Kerrisdale Capital on the China Medical Short Saga

The famous short selling hedge fund, Kerrisdale Capital, is out with its Q3 letter. Kerrisdale Partners LP achieved a quarterly return, net to investors, of 9.1% for the quarter ended September 30, 2012. The S&P 500 index returned 6.4% during that time. Since inception, the fund has achieved a return, net to investors, of 742.3%. The S&P 500 index has returned 67.6% during that time. They detail an extremely interesting story about shorting of a potential fraud in the letter: Today, the China Medical Technologies, Inc. (PINK:CMEDQ)  saga is over, and we can do an appropriate post-mortem. We established our initial short position in China…