Hedge fund manager Whitney Tilson, who runs Kase Capital, was interviewed by Anderson Cooper on "60 Minutes" about his largest short position: Lumber Liquidators.
"In 16 years of professional money management, I've seen hundreds of companies do all sorts of bad things to get their stock prices up," Tilson told Cooper. "But this has got to be the worst."
Tilson first decided to short Lumber Liquidators — North America's largest specialty retailer of hardwood flooring — back in 2013 when he saw the company's profit margins mysteriously explode.
"When you see a commodity business suddenly double its profit margins, that raises red flags,"Tilson said. "It's almost unprecedented for a company."
About six months later, Tilson was tipped off that the company was most likely purchasing formaldehyde-tainted laminated flooring in China.
In an email, Tilson wrote that after the "60 Minutes" investigation he was even more certain that the stock was a "zero."
Tilson laid it all out months ago in the following presentations, which he was kind enough to share with Business Insider.
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