Hedge funds put Perpetual in top-10 shorted stocks

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The knives are out for former blue chip Perpetual Ltd, with short sellers piling on pressure ahead of its scrip-heavy deal to acquire rival Pendal.

It’s got to the stage where Perpetul is a top-10 shorted stock on the ASX, with more bets against it than even short-seller favourites like Kogan.com, Appen, Vulcan Energy and Pointsbet.The pressure has driven Perpetual’s market value down to $1.37 billion which, ironically, is not much more the $1.3 billion Partners Group wasP Global Market Intelligence’s numbers.

So if you think Perpetual Corporate Trust is really worth $1.3 billion, then the market’s valuing its asset management and Perpetual private business units at less than a few hundred million dollars, combined.. But still, the numbers are staggering. It’ll be interesting to see whether reported short positions in Perpetual keep rising. They hit 7.95 per cent of shares on issue on October 4, the most recent data available from ASIC, having been less than 2 per cent before the Pendal deal announcement in August.Perpetual was the ninth most shorted stock as a portion of shares on issue at October 4. Magellan Financial Group,

 

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