AFR: Phil King’s Regal writes Opthea to zero and backs off risky bets, page-6

https://www.copyright link/markets/equity-markets/regal-s-new-global-small-caps-fund-on-a-tear-up-40pc-in-three-months-20250707-p5md4u

Ouch and double ouch, since I used ZIP profits to buy OPT. Probably the worst trade in ASX history
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Shares in Regal Partners, the listed business that owns Regal Funds Management and several other boutique investment firms, are down almost 30 per cent over the last year, driven by concerns that returns and fees would be affected by a number of poor bets including Opthea.

Opthea had hoped its therapy could treat wet macular degeneration – a chronic eye disorder that causes blurred vision or a blind spot in the central vision, which is the leading cause of blindness globally among the elderly.

In March, however, the biotech company warned that it was potentially insolvent because late-stage clinical trials had failed. At the time, Regal owned about $220 million in shares, easily its largest backer.

Opthea’s shares have been suspended ever since, and are unlikely to trade again.

But Farr-Jones’s new fund has found standout returns by backing Zip Co and Sezzle – two buy now, pay later businesses – and Dave, a short-term lender. All three have posted strong revenue and profit growth, sending shares up 55 per cent, 68 per cent and 34 per cent respectively last month.
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