Bleecker Street short Perdoceo Education, alleges fraud

Funds managed by Bleecker Street are short Perdoceo Education Corporation (PRDO), the firm stated in a newly-published report in which it alleges that the rise in Perdoceo enrollments and retention rates “coincided with a surge in enrollment fraud orchestrated by criminal networks-an issue that national media reports have characterized as widespread across the education sector.” The firm notes that it estimates that ghost student fraud “constitutes ~8% of PRDO revenue and ~34% of operating income, assuming the midpoint of potential ghost student enrollment (5-15%) estimated by industry experts.” Funds managed by Bleecker Street also are short American Public Education (APEI), Grand Canyon Education (LOPE), and Strategic Education (STRA), the firm noted in its report.