Manuel P. Asensio
Manuel P. Asensio | |
|---|---|
| Born | December 30, 1954 La Habana, Cuba |
| Occupation(s) | Investor, activist short seller, author |
| Known for | Founder, chairman and president of Asensio & Company, LLC; pioneer in activist short selling |
Manuel P. Asensio (born December 30, 1954, in La Habana, Cuba) serves as the founder, chairman, and president of Asensio & Company, LLC, an investment firm he launched in 1992.
Widely acknowledged as a trailblazer in activist short selling, Asensio authored the book Sold Short: Uncovering the Markets, where he elaborates on his methodologies in short selling.
Career
During his time at Harvard, Asensio began engaging in proprietary trading and, after graduating in 1982, established Boca Raton Investment Corp. He became part of Bear Stearns in 1986.
His expertise lies in short selling firms he suspected of fraudulent activities by publicly exposing their deceptive practices. By 2004, he had accused 26 companies of fraud. Across 52 public campaigns, the average decline in stock prices was near 86%, resulting in a $30 billion reduction in market capitalization and substantial profits for Asensio.
Asensio’s strategy focused on analyzing corporate disclosures to detect inconsistencies that could influence share prices. In a 2004 interview, he noted that identifying securities trading above their intrinsic value due to misleading corporate information presents lucrative opportunities for informed investors.
His activist stance led to numerous legal challenges; by 2004, claims against him totaled $1 billion across seven states. He invested roughly $10 million defending these suits without ever losing a monetary judgment. Although one jury found him guilty of misrepresentation, no financial penalties were imposed.
Regulatory sanctions
In November 2000, FINRA imposed penalties on both Manuel Asensio and Asensio & Company Inc. for violations related to short selling practices, trade reporting, and internet advertising.
By July 2006, FINRA’s National Adjudicatory Council upheld a decision prohibiting Asensio from associating with any NASD member and levied a $20,000 fine. These sanctions arose from his failure to provide requested information concerning Polymedica and from issuing misleading research reports that incorrectly stated he was shorting the company, thereby breaching disclosure requirements. Asensio contested these allegations; however, all appeals were rejected.
In August 2007, FINRA expelled Asensio Brokerage Services, Inc. (now Integral Securities, Inc.) due to nonpayment of fines and associated costs.
Following disputes over his involvement in Polymedica’s short selling campaign, FINRA fined Asensio, which resulted in the dissolution of his broker-dealer firm and his prohibition from membership.
Polymedica ultimately filed for bankruptcy protection in 2013.