We asked Ron Pollack, short-seller and former hedge fund manager of the Dancing Bear (net short) Fund, to tell us about some of his experiences as a short seller. A lot of times as a professional investor, one is simply shorting stocks that are overpriced, but otherwise ok. But sometimes, the company shorted is truly a fraud, and to Ron, the profits from shorting those stocks is doubly sweet.

He recounted one story about a company who claimed to have a special process to recover and process oil and other minerals out of petroleum tar sands.  The company obtained the rights to develop the tar sands of a vast area in Canada, and was working on raising funds for its first processing plant.  The market opportunity for the company’s special process was huge, if it worked.   The truth was that the company’s special process did not work.   Through its research, Ron’s team discovered that no experts at the time would endorse the company’s special process — not even the consultant whom the company had hired to assess its feasibility!  The consultant, in fact, was livid because the company had put out, in press releases and public filings, statements that his work had proven the viability of the process, which he said categorically, it did not.  The company eventually collapsed after a series of negative news reports, including that of the SEC and FBI (in connection with a federal grand jury) were investigating the company for false statements and stock manipulation. 

Ron Pollack, short-seller and former manager of the Dancing Bear Net Short Hedge Fund, was moved by the events of 9/11 and wanted to help. Prior to retiring from the hedge fund business, he became actively involved with the New York Rescue Workers Detoxification Project, whose purpose is to help the heroes of 9/11. During the rescue and recovery operations, tens of thousands of rescue workers received unprecedented exposures to toxic dust, smoke, gas and fumes; many have developed serious health effects as a result of these exposures. 

At the request of union officials and rescue workers, the detoxification project was established to help these men and women recover their health. All project services are provided on a humanitarian basis, at no cost. Ron took on the role of Chairman of the Fundraising Committee in 2002 and worked tirelessly to ensure that the project had the funds it needed to help those who came to it. As Carol Hamaker, Executive Director of the New York Rescue Workers Detoxification Project states, “Ron really stood up and took a leadership role to get our living heroes some help”. 

Ron himself sponsored many rescue workers for the detoxification program over the years. In a letter to Ron, the daughter of one of the many rescue workers that Ron sponsored wrote “My Dad had not been feeling well for months and his symptoms were only worsening despite his more frequent visits to doctors and increases in medication. He was not himself and it was disheartening to watch.  He lost eleven of his friends and colleagues of his firehouse on 9/11not to mention other firefighters he knew from other houses. He looked and acted old. He was pale and his mood and energy was overall down.  During his first days on his program we saw his mood brighten up. He seemed hopeful and excited. Each day my Dad improved. All of our spirits lifted and we were happy to see him getting back to his old self.  On the morning he completed his program he knew he felt “normal” again.  These were the best words he could have ever said.  Through Ron’s kindness and generosity he is giving so many people the best gift they could ever imagine; recovery, health and the best of all, hope! My Dad has been given back to us and we are all so grateful to him.”

Ron considers his participation in this project to be one of his greatest achievements. With his help, the project has been able to restore quality of life to nearly 1000 rescue workers. These recoveries have brought relief and hope to thousands more of their husbands, wives, children and colleagues. Today, the philanthropic effort that Ron brought life to has grown to include well over 150 foundations, corporations and individual sponsors.