Platinum Raises Shorts In Light Of Market Speculation
Platinum International has increased the level of short selling of its fund in anticipation of future market difficulties.
Fund managers Andrew Clifford and Clay Smolinski said they had seen stocks trading at high valuations and were concerned about the speculative craze for cryptocurrencies and targeted stocks on social media such as GameStop.
“We have to recognize extremely high valuations at a broad market level and speculative mania in certain subsets. We are more active on the short side; net market exposure is declining. In our opinion, it is plausible that the markets as a whole will struggle to make any real progress in the years to come, but, within this framework, we expect the rotations to be very profitable, ”they said. .
“Events like Archegos and Greensill are now joined by a rapid sell-off of cryptocurrencies and a re-emergence of madness in the so-called memes stock lands. We cannot stress enough that the more we see, the more aware we are of the risks. ”
They also noted that the market is rewarding cyclical stocks after a long trend favoring growth and defenses. New themes for the $ 9 billion fund included copper mines and automakers who provided exposure to the theme of energy transition.
Its largest weightings were Samsung at 3.7% and Glencore at 3.1% while its largest sector weighting was 19% to industrials.
the International Platinum The fund generated a 28% year-on-year return as of May 31, according to FE Analytics, compared to global sector returns of 24% within the Australian Core Strategies universe.
Performance of the Platinum International fund compared to the sector over one year as of May 31, 2021