Highfields’ Jacobson Says Investors Should Short Digital Realty
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Digital Realty Trust Inc. is a stock to sell short because the manager of data-center real estate relies on access to capital markets to fund its dividend, Jonathon Jacobson of Highfields Capital Management LP said.
“Pricing is going lower, competition is increasing, and the company is tapping into capital markets as aggressively as they can,” Jacobson, the founder and chief executive officer of $11 billion investment firm Highfields, said today at the 18th Ira Sohn Investment Conference in New York. “Do you want to pay three times book value for this?”