Short Seller Carson Block Teases New Short Idea, Reflects On Successful 43% YTD Drop Bet

Muddy Waters Research founder Carson Block teased a new short idea ahead of Robin Hood’s Annual Investors conference later this month and touched on a previous target that worked out pretty well for the activist short seller. 

Muddy Waters Takes Aim: Wednesday on CNBC's "Squawk On The Street," Block noted that he has a new short idea, but was unwilling to share any further details.

"I can't tell you anything about my idea, of course, because that would disadvantage the people going to the conference, but I would like to talk up the conference for a moment," the short seller said.

This will be Block's first time attending the annual conference, which brings together experts in investing, tech, AI and more to share insights. He is set to be joined on stage by some big names like Steve Cohen, Stan Druckenmiller and Ken Griffin, he said. 

All ticket sales proceeds will go toward alleviating poverty in New York City. 

See Also: Hotter-Than-Expected PPI Doesn't Deter Bulls: Yields Fall As Economists Spot Inconsistencies

Cutting Profits Short: The last time Block was on CNBC, he revealed that he was short Hannon Armstrong Inc HASI, which is down approximately 43% year-to-date.

The problem with the company is that although their accounting practices are legal, they're intentionally misleading, he stated. 

"They produced all of these paper profits, but there was no or very little cash underlying that," Block said. 

Muddy Waters has since closed its short position on Hannon Armstrong, but the short seller acknowledged the firm may have exited too early. 

Block explained that the company developed an AI tool to tell it when to close its positions. The firm closed when the model said to exit, but the stock has continued to fall since. 

"We would have made more money, likely, if we'd held onto it, but in any event ... a lot of what we said has been ratified," Block said. 

HASI Price Action: Hannon Armstrong shares are down more than 31% in just the last month. The stock was down 2.62% at $16.52 Wednesday afternoon, per Benzinga Pro.

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