Hedge Fund Regal Takes Short Position in Biggest Australian Bank
- Regal’s King says valuations and competition to weigh on CBA
- Capstone Copper shares among Regal’s bullish calls, King says
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Veteran hedge fund manager Philip King has taken a short position in shares of Commonwealth Bank of Australia, citing one of the world’s most expensive valuations.
With a forward price-earnings multiple of 22 times, CBA is the priciest bank on the MSCI World Bank Index and compares with 11.7 at JPMorgan Chase & Co. King, the chief investment officer at Regal Funds Management Pty, said he expects CBA’s earnings-per-share to decline in coming years.