Tilson had been maintaining a short position on Lumber Liquidators since allegations that it was using Chinese-made laminate with a high concentration of formaldehyde earlier this year. However, he now says he has covered his position after learning new information about the situation, reports MarketWatch.
According to MarketWatch, Tilson had referred to Lumber Liquidators as “immoral” and “reckless” in May. However, he now claims that the company’s management is just “sloppy and naive, but not evil.” Many other investors still hold a short position on LL stock.
Tilson said in a piece written for Seeking Alpha that he can’t reveal the details concerning the information he received that made him switch his stance on Lumber Liquidators.
LL shares were up 21% as of Tuesday morning.
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