So why is Tilson shorting K12? In addition to his research alleging that conditions and academic performance at each of K12’s online academies have declined significantly since its IPO, Tilson said he believed companies like K12 undermine the charter school movement in which he is deeply entrenched and that he has spent years fighting for.
“I try and separate my emotion from whether it’s a good investment,” Tilson said.I could have told him and his investors that months ago. In fact, I did just that, last November. But would they listen? NOOOO. Now writes Buzz Feed,
The king of the privatized virtual learning world, K12Inc. has investors checking to see if they're still wearing their shorts. The problem continues to be extravagant costs stemming from huge salaries paid to top execs, plus K12 students scoring behind kids in brick-and-mortar schools.So on one rare sunny day, Tilson and I will hopefully both be celebrating ( him with champagne and me with 4-buck Chuck) the death of K12Inc.