Sage Capital is doubling down on its short position at Commonwealth Bank, despite a relentless rise in the lending giant’s share price leaving the Sydney hedge fund nursing poor returns over the last three months.
The firm, run by veteran portfolio manager Sean Fenton, told investors in its latest note that it was holding firm on the view that CBA’s share price rally – having driven the stock up over 36 per cent in the past year, making it one of the world’s most expensive banks – was “unsustainable”.
This article incorrectly said Sage’s Equity Plus Fund had dropped 2.3 per cent, when it had underperformed its benchmark by 2.3 per cent. It also said the Absolute Return Fund fell 3.8 per cent, which was also its underperformance against benchmark.
