Short selling and fieldwork

A short seller checks the world against the filings because the filings are what is in doubt.

2 ideas that carry it

TechniqueFraud and forensicsDocumentary
A short seller does fieldwork because the filings are the thing in doubt
When the filings are what is in doubt, the evidence has to come from outside them.
Building a short thesis, or any diligence where the reported numbers seem too good for the business described.
From The China Hustle · 2017
TechniqueFraud and forensicsLetter located
The modern short report is built from local records, site visits and the filings
A short thesis is a public claim set against a fact the company does not control, with the arithmetic that joins them shown.
Short pitches, forensic work, and any thesis that depends on reported figures being false.
From Muddy Waters' initiating report on Sino-Forest · Muddy Waters Research