Melbourne Herald Sun- LEADING fund managers yesterday defended the practice of short selling locally listed banks and other blue chip stocks. They insisted it was a legitimate way of generating returns in a bear market
The Australian Council of Superannuation Investors, a group representing the interests of industry super funds, yesterday hit out at criticism that share lending by super funds had contributed to the demise of stocks such as ABC Childcare and Allco Finance Group.
"If the underlying fundamentals of a company are good then people will eventually start buying the stock," said ACSI president Michael O’Sullivan.
"Short selling is a legitimate investment strategy in a bear market because it is one of the most effective ways of increasing income when stock prices fall."
