The World’s Top Performing Hedge Fund Is Shorting Big Dividends
By-
Oslo Asset Management’s AAM Absolute Return grew 58.5% in 2015
-
Companies paying dividends rewarded with generous valuations
The world’s top performing hedge fund is shorting companies that are juicing their valuations by promising investors big dividends.
AAM Absolute Return Fund, which according to HSBC Holdings was the world’s best performing hedge fund in 2015, is betting on declines for energy companies that “even short term will struggle to uphold dividends,” according to Harald James-Otterhaug, who oversees the fund as the chief executive officer at Oslo Asset Management AS.
“In times of low rates when investors chase yield, we’ve seen that companies that pay dividends have often been rewarded with generous valuations,” the 43-year-old said in an interview Monday at his attic loft office overlooking Oslo’s Royal Palace. “Some stocks have ended up being very overvalued.”…
The World’s Top Performing Hedge Fund Is Shorting Big Dividends
