When the stars align, there is money on the table for investors in short selling – the process of selling high, then buying low. With the tide of central bank liquidity receding, David Poppenbeek from K2 Asset Management says it’s time to start judiciously growing the short book. You need deeper... Show More
Investors have likely heard asset allocation specialists advise increasing portfolio exposure to 'alternatives' given the current market conditions. Invesco's Alternatives Investment Strategist, Walter Davis, explores this asset class and suggests 5 alternatives to consider right now. Show More
In market sell-offs like we’ve experienced this week, it’s hard to find anything that’s unaffected by the selling. The ASX200 was down 4.9% before trading opened on Friday, but the pain for momentum and technology stocks has been even worse. Show More
While some investors may sell short to offset other positions, Simon Shields from Monash Investors Limited explains that they engage in shorting to make money. One of those shorts is betting against one of the best-known brands in the country, Coca-Cola Amatil. But why would you bet against Coke? “We’ve... Show More
I wanted to change up the pace, from looking for cheap companies, to looking for expensive companies. Welcome to book number 9 in my top 10 investment books of all time, “The Art of Short Selling”. This book has been written by Kathryn Staley. Kathryn is an expert in the... Show More
Short selling scares people. Many advisors categorise long/short strategies as ‘risky’ and they have support from the likes of Warren Buffett who describes it as dangerous and irritating. Our observations show long/short strategies do in fact give skillful managers a competitive advantage. Show More
This week we have our first overseas guest on The Rules of Investing, Jim Mellon. Jim is a billionaire investor, speaker, and co-author of 'Juvenescence: Investing in the Age of Longevity.' Show More
The share price of tech market darling, Tesla, rose inexorably more than ten-fold between early 2013 and early 2018. One manager not convinced by the hype was Jacob Mitchell from Antipodes Partners, who presented his short thesis on the stock at Livewire Live as early as July 2017. Show More
Every month, we provide a snapshot of the Affluence Investment Fund portfolio to our investors. We always include the two following charts to help people understand how we have positioned the portfolio: Show More
In my 30 years as an analyst and fund manager, I have seen recurring business situations and patterns of behaviour that often lead to mispricing by the market. This attracted me to the idea of behavioural economics, as a validation of some of these insights. So, like behavioural economists, we are... Show More
Where there’s smoke, there’s usually fire, so in this episode the panel focus on four stocks that are feeling the heat right now. Activists, short sellers and industry disruption are all creating headaches for the likes of BHP, TPG Telecom, Quintis and Aconex. Show More
Within investing, dealing with success isn’t the problem; understanding when your roadmap isn’t working out is the hard part. If you change your mind too early, you run the risk of shutting down good ideas on what we’d call “noise”. The original thesis on Woolworths in 2015 was of over-earning... Show More
It’s been an interesting week in the markets with falls in some of last year’s top stocks, and gains in some of last year’s laggards. DMP is down 18% and Macquarie Bank is down 11%, while Fortescue is up 7% and South 32 is up 17%. Such reversals have certainly... Show More
Low market turnover, high valuations, high cash balances and a lack of buy ideas suggest market risk is skewed to the downside. That's the view of Justin Braitling, CIO of Watermark Funds Management, who operates a 'market neutral' or 'long short strategy'. Braitling says, long only managers are siting on... Show More
Look to short Healthcare stocks if bond yields start to rise. Shane Oliver from AMP Capital says there's evidence of more short selling as the market continues its rise. Investors who are cynical on the earnings recovery are targeting the sectors on the highest Price to Earnings ratios such as... Show More