Penumbra falls as much as 8% after short activist hedge fund manager Gabriel Grego says sell the stock
- Activist short investor Gabriel Grego claims US healthcare company Penumbra is "selling a device that is killing and injuring patients," according to a release.
- Penumbra shares fell by as much as 8% before recovering some losses. The company was not immediately available to comment.
- Grego's successful campaigns have led to de-listings for previous targets.
Shares in healthcare device manufacturer Penumbra fell by as much as 8% on Tuesday, after activist short seller Gabriel Grego said he had added the stock to his sell-list.
Grego announced the new short position while appearing on investor Carson Block's new short-selling show 'The Chopping Block" on Zer0es.tv.
Penumbra shares were last down around 0.1% at $242.11, having fallen as much as 8% immediately after Grego's announcement that he would open a short position based on the failings of the company's Jet 7 Xtra Flex catheter used in stroke patients. When asked for comment, a spokesperson for Penumbra told Business Insider to "refer to Penumbra's most recent earnings release, call transcript and associated filings on October 28, 2020 and November 2, 2020."
Grego is the managing partner and chief investment officer of Quintessential Capital Management (QCM), a long/short equity fund based in New York. He is know for his harsh criticisms of companies. Grego slammed cannabis company Aphria back in late 2018, prompting shares in the company to drop by as much as 20% on the day.
Some of his previous shorts include UK software firm Globo Plc, Greek jewelry company Folli Follie, Bio-on and streaming company Akazoo.