'The Assassin' Fahmi Quadir on How to Survive as a Short-Seller | Odd Lots

Short-selling today requires navigating a "golden age of fraud" where companies increasingly rely on narratives to obscure fundamental economic deterioration. Rather than relying on traditional whistleblowing, successful short-sellers must identify structural pressures and behavioral red flags, such as management’s tendency toward financial engineering when facing distress. Fahmi Quadir, founder of Safcat Capital, highlights that the informational alpha once provided by short-sellers is currently failing to drive price discovery, forcing a shift toward fundamental analysis and momentum-based trading. Expanding beyond her traditional short-only mandate, Quadir is now pursuing long-term shareholder activism in the Korean market. By targeting companies with poor governance—specifically those trading below book value—she aims to leverage new regulatory mandates that prioritize shareholder rights and transparency, effectively applying her expertise in identifying corporate rot to unlock value in an emerging market landscape.