Viceroy Research, which on Wednesday came out with a scathing report on Anil Agarwal-controlled Vedanta Resources, is not new to controversy.
The research group, which is registered in Delaware, the US, and has taken on Vedanta Resources, alleging it of running a structurally-parasitic corporate model, has built its reputation over the past decade for targeting high-profile corporations with detailed forensic investigations and triggering seismic consequences in capital markets.
Founded by Fraser Perring, a former social worker-turned-financial analyst, the firm first rose to international prominence in 2017 with its report on South Africa’s Steinhoff International. That investigation uncovered widespread accounting irregularities and contributed to the company’s stock collapsing by more than 90%, wiping out billions in shareholder value. It was a spectacular debut that announced Viceroy as a new force in the activist short seller arena.
Since then, Viceroy has been both lionised and vilified for its aggressive and unapologetically-critical stance on corporate governance. Its targets have ranged from German payments giant Wirecard, which later became embroiled in one of Europe’s biggest accounting scandals, to UK-based healthcare provider NMC Health, which was ultimately forced into administration. In both the cases, Viceroy’s reports were initially dismissed or ridiculed, only for major regulatory investigations and financial implosions to vindicate many of its claims.
However, the firm’s tactics have also brought it in the crosshairs of regulators and lawsuits. In 2021, Viceroy was fined by the Financial Conduct Authority in the UK for failing to disclose its short position while publishing negative research on a real estate company. The Australian securities regulator sued Perring and Viceroy in 2023 for what it called “misleading and deceptive” statements about hospital operator Ramsay Health Care. While Viceroy denied any wrongdoing and characterised the lawsuits as attempts to silence whistleblowers, the legal battles underscored the polarising nature of its work.
In 2023, it targeted Tokyo-based Abalance for circumventing US duties. It shorted Truecaller in 2022 for intentionally misdirecting valid criticism, and published a report on the technology giant Advanced Micro Devices Inc in 2018, expanding on the financial impact of the CTS Labs vulnerabilities.
Viceroy Research also made headlines when it placed bets against companies like Elon Musk-owned Tesla. The firm has come up with reports on 29 companies, according to its website.
Reports suggest that Medical Properties Trust, an Alabama-based real estate investment trust, won a preliminary case in its defamation lawsuit against the short seller. It has also been fined by the South African FSCA for false and misleading statements about ‘Capitec’.
Viceroy’s approach of combining detailed forensic accounting with field interviews and whistleblower insights has earned it praise for transparency while some have accused it of market manipulation. Critics argue that its business model relies on tanking share prices for profit, while supporters say it brings much-needed scrutiny to companies shielded by regulatory complacency.
It remains to be seen whether its report on Vedanta Resources holds up under legal or regulatory examination. But, it has certainly grabbed the eyeballs once again.