Phil King, John Hempton hit as Trump rally burns short sellers
Australia’s highest-profile short sellers have been burned by the wave of investor euphoria that has flooded global markets since President-elect Donald Trump’s [shock] election win last month.
Phil King’s Regal Funds Management posted falls in November, as global markets rallied higher on Trump’s victory.
“An exuberant equity market and aggressive snap back in risk positioning post Trump’s election victory created a challenging month for shorts,” Mr King told investors this week.
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Billed as the largest macro-event of the year, the US election result has pushed Australian and US sharemarkets to record highs since Trump’s decisive victory on November 5, driving stellar returns for investors in US tech and cryptocurrencies in the process.
The rally has been driven by hopes the president-elect’s mandate to enact sweeping reform will loosen regulations and spur profit growth for US corporates. But not everyone has benefited from the rally.
Regal’s Atlantic Absolute Return, Tasman Market Neutral and long-short resources funds all ranked among the worst-performing Australian hedge funds in November, according to preliminary data from Morningstar, declining 4.5 per cent or more during the month. Some of Regal’s smaller strategies fared even worse. Its Global Long Short fund strategy and Market Neutral Strategy, which operate as sub-funds in Regal’s listed investment vehicle, fell 11.5 per cent and 12.1 per cent, respectively, over the month.
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from the wires .. I put [shock] In brackets. Wasn’t a shock to me.
