Hedge fund managers give thumbs down to short selling ban
A majority (55 per cent) of hedge fund managers believe the short selling ban will materially affect their ability to implement their investment strategy, according to a survey by the Alternative Investment Management Association of Australia (AIMA).
However, the AIMA survey of 27 managers, covering 28 hedge funds and representing $24.7 billion in assets under management, found only six are considering suspending or closing their fund’s application/redemption terms.
Another key survey finding was that individual comments from respondent managers were “extremely negative” in their assessment of the short selling ban, according to AIMA chairman Kim Ivey.
The most common complaint about the short selling ban was either it negatively affected the manager’s investment strategy or it negatively affected Australia’s reputation as a sophisticated financial centre, he said.
The survey suggests the “short selling ban has not only created industry problems but also damaged Australia’s reputation as a safe and sophisticated market for offshore investors”.
“While the regulator continues to ban short selling, both widespread market liquidity and true price discovery is being undermined,” he said.
Recommended for you
Investment solution provider Channel Capital has appointed James Archer as its latest distribution director, joining from Pinnacle Investment Management.
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
