July 24, 2014

Kerr: Higher valuations make shorting IPOs more attractive

High valuations brandished on recent UK IPOs such as AO World and Poundland are creating ideal shorting opportunities, according to Luke Kerr of the Old Mutual UK Dynamic Equity Fund.

Kerr revealed that his long/short fund has benefited from the aforementioned companies slumping since their initial high-flying share prices. In his view these two stocks in addition to Circassia will continue to “re-rate as they are fundamentally too expensive”, he told FE Trustnet.


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