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How hedge funds predicted Vocation’s collapse

Christopher Joye | It may be one of the greatest Australian hedge fund trades: the “short sales” that profited from the spectacular 77 per cent decline in the share price Vocation.

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It may be one of the greatest Australian hedge fund trades ever: the “short-sales" that profited from the spectacular 77 per cent decline in the share price of education company Vocation after almost a year of pain.

While shareholders have lost over $590 million since Vocation’s share price peaked in September, one of the hedge funds shorting the stock has banked $20 million in profits.

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Christopher Joye is a portfolio manager with Coolabah Capital, which invests in securities, including those discussed in his column. Connect with Christopher on Twitter.

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    Original URL: https://www.afr.com/wealth/investing/how-hedge-funds-predicted-vocation-s-collapse-20141107-11io6d