View more on these topics

Shorting ‘tricky’ amid green shoots talk, says BlackRock’s Lyttleton

BlackRock’s Mark Lyttleton says making shorts is tricky in the current environment due to market optimism which is heralding the arrival of a new bull market.

Speaking this morning at a BlackRock roundtable, the absolute alpha fund manager said he had reduced the number of shorts within the fund at the end of Q4 2008 and Q1 2009 as the holdings had fallen a long way, become smaller and a large amount of the alpha had been captured.

He said: “Shorts are quite tricky at the moment because everyone’s feeling green shoots and glass half full but I think that will change over the next few months as more reality comes into the equation.”

Lyttleton said the fund was a nice blend of different things going on and not over reliant on any one position.

He said he had not increased the sizes of the fund’s shorts and allowed them get too out of control and was waiting for a better opportunity to reintroduce them.

Lyttleton closed out his historic short on banks in January and now has a small net long in the sector and is a little short on life companies.

Lyttleton said the fund had also shorted bigger companies to gain more liquidity as some of the medium size holdings had previously become quite small and inherently more illiquid.

He said: “Over the last three months there are companies where we think the business model is challenged, the balance sheet is challenged, current trading is challenging and the share prices goes up 50 per cent because everyone thinks that green shoots are coming.

“You’re banging your head against a wall a little bit and we’ve had a bit of that and had some shorts go up against us, but that’s the nature of the fund.”


Zurich bond opens factory gates

The Zurich international portfolio bond is designed to provide flexibility, a wide investment choice and transparency for high-net-worth UK investors.

Stop the cold-calling

Royal London is pleased to support the petition calling for a ban on cold-calling for pension and investment products. The petition, launched by IFA Darren Cooke of Red Circle Financial Planning and hosted on the Parliamentary website, calls on the Government to ban cold-calling for pensions and investment products. A similar ban is already in force […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm