Short-seller Carson Block shared his market views in an interview Tuesday on CNBC's "Squawk Box."
On long versus short investments: "What we do works, it doesn't work as well on the long side because we're looking backward. Most people in investing are trying to figure out what happens next," Block said. "We basically look at the information that's been released to the market. Is this representative of what's actually going on in the business? If it's not, we think there's an opportunity to come out and say no."
On management: "We are almost exclusively shorting companies where we think management has been a bad actor in some way."
Block is founder of activist investment firm Muddy Waters Capital. He is known for his short selling research, which led to several government fraud investigations and financial restatements.
He also discusses:
- The story behind his firm's name
- The state of short selling
- Financial engineering
- St. Jude Medical
- Why he shorted Japan's Nidec
To watch the broadcast interview in its entirety, you must be a CNBC PRO subscriber.