GeoInvesting has a longstanding reputation as short sellers. Our work in exposing more than $10 billion in U.S. listed China based frauds was featured in the recent feature documentary The China Hustle. We also offer portfolio protection for our members, based on the research strategies that have made us extremely well-known for our on the ground due diligence.

1. GeoInvesting’s Proven Short Strategies
GeoInvesting has a longstanding reputation as short sellers. Our work in exposing more than $10 billion
in U.S. listed China based frauds was featured in the recent feature documentary The China Hustle. We
also offer portfolio protection for our members, based on the research strategies that have made us
extremely well-known for our on the ground due diligence.
GeoInvesting’s research process was originally geared towards finding bullish investment opportunities
through fundamental analysis, coupled with management interviews and literary research. While we
are still successful in this regard, our strategy quickly expanded to on-the-ground site investigations,
namely in Asia, after it became apparent that certain market participants were lying to U.S. investors.
All told, between 2010 and 2014, over $10 billion in investor capital was lost directly because of
fraudulent activities by U.S. listed Chinese companies. Only now is the story behind the massive Chinese
fraud gaining mainstream traction.
We also perform significant amounts of research on U.S. based companies. We also navigate investment
risk by interviewing company management, dissecting conference calls, interacting with our wide
network of investors and scouring financial documents for hidden clues. GeoInvesting provides quick,
concise and efficient research instead of hundreds of pages of financial jargon. Our institutional clients
find value in the fact that they are hiring an entire team for the cost of one analyst to sift through this
information. We often catalyze our ideas by releasing them to the public. Our network for dissemination
is robust, with great working relationship with numerous news outlets and financial media companies.
We believe our approach to due diligence has become the benchmark for research boutiques.
Selected Strategies We Employ
o Determination of tangible business operations through site visits
o Assessment of land ownership
o Confirmation of company licenses to operate
o Complete log of relevant pictures
o Video surveillance of company operations
o Verification of work force claims
o Verification of production line claims
o Verification with customers, dealers, distributors and acquisition targets
o Conversations with locals and others with knowledge of a company’s standing in the
community
o Conversations with local legal authorities
o Physical acquisition of SAIC Filings (for China-based companies) of the company and its
subsidiaries
o Background checks of company executives and past dealings
o Traditional equity analysis/discounted cash flow

2. On the Ground Due Diligence
There are two main types of due diligence that we embark on: digging through publicly available
literature and being interactive with company management, other investors and analysts. When
combined, due diligence becomes a fact finding mission, and not just homework.
On-the-ground due diligence is more than just visiting a company to find out if it really exists. We
approach OTGDD as an opportunity to extensively verify as many aspects of a company as possible.
What we ultimately want to know is how accurately the company has portrayed its operations to
investors. There is a level of trust that must not be breached, so instances of misrepresentations or
material misstatements always raise red flags for our team.
Real due diligence should not just be done from the comfort of an office chair, nor is there a simple
formula that encompasses the full scope of the work. It needs to be done in layers, each successive
layer revealing a more to the story until a crystal clear picture is formed.
Document Analysis
It’s no secret that GeoInvesting helped spearhead a movement to scrutinize the PRC filings of various
U.S. listed China-based companies. We have transcribed hundreds of filings, often scouring over a listed
company’s multiple subsidiaries to reconcile major line items that we feel should be properly
represented in both its SAIC and SEC filings. Blatant discrepancies lead us to deepen our investigations.
Undisclosed revisions to SAIC files have also made this process more challenging.
Pump and Dump Screeners
We have decades of experience in identifying potential “pump and dump” campaigns in addition to
companies who are fundamentally underperforming. When we examine a company and find that it
could potentially be a “pump and dump” campaign, we add it to an ongoing list of companies that our
members can use as a checklist of names we would avoid. From there, we often continue with more
comprehensive due diligence and occasionally, when it benefits the public discourse and can be a
lucrative trade, we will short these names and release our research to the public.