A released a statement on Wednesday (12.mar) in which he said he was the target of the dissemination of “false, incorrect and inaccurate information”In a of the American Analysis Company . The analysis says that the Brazilian broker operates an alleged financial pyramid scheme. This is the statement (PDF – 177 kb).
“XP has learned of false, incorrect and inaccurate information released by Grizzly Research and reinforces its commitment to ethics, transparency, regulatory compliance, governance and compliance with the law”The company said.
The broker also stated that “All appropriate legal measures against Grizzly Research will be taken”. XP also said that it meets current legislation, follows all rules established by regulatory bodies and has its operations regularly audited by independent institutions.
What the Grizzly report says
Grizzly Research released on Wednesday (12.mar) a report accusing XP investments to operate a “MASSIVE PONZI SCHEME”By selling coes (structured operations certificates) linked to a background called Gladius.
According to Grizzly, the fund has presented a return of 2,419% in the last 5 years, with low volatility, which has raised suspicions about its transparency. The analysis company also states that XP inflates the profits presented to investors and that the capture of new customers would support the high returns promised, a common feature in Ponzi schemes.
The mentioned scheme (Ponzi) refers to a model in which the returns paid to investors come from the money of new participants, not the actual profits of the operation. Over time, this system becomes unsustainable as it depends on the continuous entry of new investors to maintain payments. When fundraising decreases, the collapse scheme, leaving the majority of those involved in the damage.
In the case of XP, the accusations suggest that the broker would be using this structure to inflate the profitability of its products, although the company denied any irregularity. The case generated strong impact on the market, leading to of the actions of XP Inc. in Nasdaq.
What is Grizzly Research
On its official website, Grizzly Research be a company focused on “Produce differentiated research insights on publicly traded companies through in -depth diligence”. This means that the company conducts detailed investigations into companies listed on the stock market.
The team, made up of US analysts with accounting, economics and engineering training, conducts field research, stakeholder interviews and facilities visits to identify “negative aspectsThat may be hidden from the public.
However, the company’s website contains a notice of exemption from liability, stating that its reports and opinions are based on interpretations rather than facts. Grizzly Research itself recognizes that her approach is biased and claims to have no fear of publishing pessimistic visions about companies.
In the institutional description, the company states: “We often find that management teams are making conscious efforts to hide negative aspects of the public, and amid the Perpetual Wall Street purchase machine, there is no one to call them. We are not afraid to publish our pessimistic views. On the date of publication of our articles, we and our affiliates can have long or short positions in covered companies. We are biased in our views, as are investors, the company we publish, investment banks and almost any interested”.
