Ann: Investor presentation - IOOF FY 2018 results, page-60

I think many investment managers look at IOOF as the ideal short due to its market leverage, as pointed out by @Transversal.

@andy777

While I did spend some time trying to quantify the leverage of IOOF’s earnings to the market value of FUMAS, I do not necessarily see that leverage as a reason why people would want to short the stock (quite the contrary, in fact).

My guess is that the buildup in shorts is just a reflection of the ongoing work of the RC, its focussing on the superannuation sector right as we speak, and the sheer scarcity of names to short. In general terms, I do see the short positioning as being “thematic” (i.e. “short the financial advice sector with any means available”) rather than company-specific.

I definitely hope the SP gets pushed down as much as possible over the coming weeks (so I can further increase my position), and at the same time there are no further negative surprises from the RC (of the kind that can damage the business going forward).

If that is indeed the case, and if the RC does not explicitly raise by the end of September the possibility of abolishing the vertical integration model, then I wouldn’t want to be in the shoes of a shorter who needs to cover their position…