Here's Why One Hedge Fund Manager Is Shorting Burlington Stores

A hedge fund manager thinks earnings estimates are too high for Burlington Stores, projecting a potential 20% to 40% drop in its stock.

Burlington Stores (BURL)  has been a high flyer this year, but one hedge fund manager says that stock could fall 20% to 40% from its current level. Ben Axler, who is founder and chief investment officer at Spruce Point Capital Management, is shorting the stock, writing in a report that his firm "has obtained bona fide documentary evidence which suggests aggressive accounting at Burlington." Axler also writes that the company has benefited from "management's aggressive financial and accounting tactics to engineer 'beat and raise' quarters." During an interview with TheStreet TV, Axler said "we've found the management team made a number of aggressive financial moves to propagate the stock to allow the insiders to sell out recently, and now we're seeing the management sell as well." TheStreet's Rhonda Schaffler has details from Wall Street.