Richard Li
Malcolm, though, discovered that the tracker fund was not going to buy the PCC stock through the exchanges at all. It made a private off-exchange deal with PCC's founder Richard Li. This meant that, when the day of the expected fund purchases arrived and no purchases took place, there'd be a strong downward pressure on the stock price. Accordingly, on Malcolm's suggestion, Carney's hedge fund took a "short" position on $100 million of PCC stock. In the event, the tracking fund did not make the expected purchases, and the price dropped dramatically—Malcolm covered the short position, winning his firm more than twenty million dollars. This one deal made Malcolm a star, known to expat western traders throughout east Asia as their "hot young gunslinger."