Regal warns of index bubble stocks

“Certainly, passive investing is leading to bubbles in certain stocks,” he says.

Ironically, many of the long short funds in the Morningstar table do not currently hold any short positions in shares. King says passive investing is one of three factors working against fund managers trying to short stocks, which involves borrowing stock for a fee and selling it short in the hope of buying it back after it falls. It is equivalent to leveraging a portfolio.“Firstly, low-interest rates mean that stocks can trade at very high multiples and fundamental valuation perhaps becomes less important,” he says.

“We went aggressively long in the mining sector 12 months ago – we’ve actually been building that over the last few years,” he says. A few of the best performing stocks in the Atlantic fund have been lithium miners Pilbara Minerals, Ioneer and Liontown. Quest bought into three floats during the year – Siteminder, Ventia and Qualitas, two of which did well.

Australia Latest News, Australia Headlines

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

‘Europe is sidelined’: Russia meets US in Geneva and Nato in BrusselsEU leaders warn of consequences in response to further aggression against Ukraine
Source: GuardianAus - 🏆 1. / 98 Read more »

NT slaps massive fines on people who don’t report positive RATs as cases climbThe Northern Territory has reported 550 new COVID-19 cases and mandated the reporting of positive rapid-antigen test results. 7NEWS
Source: 7NewsSydney - 🏆 16. / 63 Read more »

Chinese national trying to improperly influence politicians, says MI5Warning circulated to MPs and peers about woman targeting parliamentarians
Source: GuardianAus - 🏆 1. / 98 Read more »

James Weir recaps And Just Like That episode 7The moment we’ve been waiting for has finally come in the Sex And The City reboot. And it has taken a horrendous turn. Given up waiting for normality then. Poor sods.
Source: newscomauHQ - 🏆 9. / 77 Read more »

Big fish BHP to make one big splash in ASX indicesUnification of BHP will create “material” turbulence on Australia’s flagship market indices, but S&P has abandoned plans to stagger the event over two months.
Source: FinancialReview - 🏆 2. / 90 Read more »

US inflation surge sets stage for March rate increaseThe US consumer price index climbed 7 per cent in 2021, the largest 12-month gain since June 1982.
Source: FinancialReview - 🏆 2. / 90 Read more »