Jeremy Bendeich, Portfolio Manager at Avoca Investment Management, believes that short positions in Next DC (NXT) have been building on some false assumptions

Jeremy Bendeich, Portfolio Manager at Avoca Investment Management, believes that short positions in Next DC (NXT) have been building on some false assumptions. We asked him what changes he has made to his portfolio recently, this is his response. We have continued to add to our Next DC position. Short positions have been building on the belief that the company needs to raise equity, (we believe EBITDA can cover growth capex in FY15 or that debt funding is available), that the founder Bevan Slattery is looking to sell (He recently increased his position), and or that sales are disappointing, (We believe sales will be sufficient to move the company to EBITDA and cash-flow positive in 1HFY15).