Minerva, a short-biased fund led by Laks Ganapathi, plans to launch later this month with Michael Burry as senior adviser, scanning healthcare, retail, restaurants and smaller banks for shorts. Ganapathi says private-credit loan books may conceal borrower strain.
Ganapathi said private-credit opacity can leave borrowers’ financial strain hidden for years. The report cites bankruptcies of U.S. auto-parts supplier First Brands, car dealer Tricolor and U.K. mortgage provider Market Financial Solutions. Fitch Ratings put the U.S. private-credit default rate at a record 6.3% annualized in August.
Ganapathi declined to name short targets or disclose the fund’s size. HFR estimates dedicated short-biased funds fell from 54 in 2008 to six in the second quarter of 2026, amid regulatory scrutiny, difficult performance for short positions and changes in U.S. hedge-fund reporting. The 2021 GameStop frenzy highlighted the risk that stock moves detached from fundamentals can overwhelm short bets.
