Hedge funds that shorted major banks and won

Christopher Joye

Coolabah Capital

In The AFR I speak to the hedge funds that shorted the major banks and won. I also present analysis on how the major banks' dividend payout ratios have changed over time and how they compare to key peers around the world (see charts below). "We were meeting with planners in April and they asked us what our biggest 'short' was, and we said 'Aussie banks'," recounts the notoriously gruff Stephen Aboud (aka "Sheikh"), who, alongside his partner Marcus Hughes, has the "hottest hands" in Aussie equities right now. "We were howled down," continues Sheikh, who previously ran the Lowy family's stocks. "The planners countered: 'What about the banks' yields? Surely that makes them a beautiful bet in a low-cash-rate world?' "We warned them about capital losses and that the highest returns on equity and dividend payout ratios in the world were simply not sustainable. They asked which specific bank we were short – 'all the big boys', was our response." Read my article for free here (VIEW LINK)


Christopher Joye
Portfolio Manager & Chief Investment Officer
Coolabah Capital

Chris co-founded Coolabah in 2011, which today runs over $8 billion with a team of 26 executives focussed on generating credit alpha from mispricings across fixed-income markets. In 2019, Chris was selected as one of FE fundinfo’s Top 10 “Alpha...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.