Mercury General named a short at Wolfpack after California wildfires

Wolfpack Research is short Mercury General (MCY), the firm disclosed, telling investors in a newly-published short report that its Air analysis shows that the company’s California subsidiary is “deep underwater.” Wolfpack expects “more than $2 billion in claims will blow the top off its $1.3 billion reinsurance tower and eat up its subsidiary’s existing capital,” adding that it believes Mercury “will be severely affected by the loss of capital.”