‘Volatility is opportunity’: why this manager loves shorting stocks

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 90%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Angela Aldrich bet against Treasury Wine Estates at the top of the market; now the Bayberry Capital founder is preparing to make her next big call.

“At some point, everything that’s priced for perfection reaches a point where expectations get too far ahead of themselves,” Aldrich adds.

“The past few years have been an entire lifetime of economic cycles. Seeing that type of disruption first-hand when you are managing your own portfolio was a totally different experience,” she says. “We need irrational moves in our shorts to get as much juice out of every position as possible. And so it’s been really great for us in this period, no matter which way the market has been moving.”One of the hedge fund’s first substantial long positions was Nasdaq-listed Willscot Mobile Mini Holdings, which dived more than 60 per cent from peak to trough during the early months of the pandemic.

Meanwhile, on the other side of the portfolio, Aldrich leant into the short side of the business as the market recovered. “You’re seeing a market that is very quick to pull the sell trigger,” Aldrich says. “They had this huge outstanding piece of litigation related to about 50 per cent of their stated book value when we started looking at the stock – people thought we were insane.“You just needed this overhang to go away and people would start buying the stock again. The cherry on top was we thought that overhang was going to go in their favour, and that finally started happening in 2023.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US stocks fall, volatility risesShares were lower in New York with investors positioning for next week’s Federal Reserve policy meeting.
Source: FinancialReview - 🏆 2. / 90 Read more »