Two good reasons to consider going short in Aussie equities

David Moberley of Paradice discusses how he seeks to combat the concentration found in Aussie equities by adding short selling to his toolbox. David shares his ‘four bucket’ strategy to identifying a company to short, and details the pros and cons of this investment approach.

November 2, 2020

David Moberley of Paradice discusses how he seeks to combat the concentration found in Aussie equities by adding short selling to his toolbox. David shares his ‘four bucket’ strategy to identifying a company to short, and details the pros and cons of this investment approach.

Read Transcript

The Australian market is uniquely concentrated. The top end of the index is dominated by a few big companies, and that’s supported by a long tail of small positions. This presents a difficult opportunity for an investor to express a negative view on one of those small companies, but also makes betting against the bigger companies a risk.

Paradice Investment Management has traditionally been known as a long-only manager, but David Moberley seeks to combat this concentration by adding short selling to the toolbox.

In this video, David shares his ‘four bucket’ strategy to identifying a company to short, and details the pros and cons of this investment approach.

This video was produced by and originally appeared on Livewire Markets.

David Moberley is a 2020 Conference Fund Manager, and Paradice Investment Management is a Core Fund Manager.

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November 2, 2020

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David Moberley

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The Australian market is uniquely concentrated. The top end of the index is dominated by a few big companies, and that’s supported by a long tail of small positions. This presents a difficult opportunity for an investor to express a negative view on one of those small companies, but also makes betting against the bigger companies a risk.

Paradice Investment Management has traditionally been known as a long-only manager, but David Moberley seeks to combat this concentration by adding short selling to the toolbox.

In this video, David shares his ‘four bucket’ strategy to identifying a company to short, and details the pros and cons of this investment approach.

This video was produced by and originally appeared on Livewire Markets.

David Moberley is a 2020 Conference Fund Manager, and Paradice Investment Management is a Core Fund Manager.

Disclaimer: This material has been prepared by , published on Nov 02, 2020. HM1 is not responsible for the content of linked websites or content prepared by third party. The inclusion of these links and third-party content does not in any way imply any form of endorsement by HM1 of the products or services provided by persons or organisations who are responsible for the linked websites and third-party content. This information is for general information only and does not consider the objectives, financial situation or needs of any person. Before making an investment decision, you should read the relevant disclosure document (if appropriate) and seek professional advice to determine whether the investment and information is suitable for you.

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