US hedge funds dump Australian bank shares

The Australian Newspaper has reported International Hedge Funds have been shorting Australian Banks for fears of a housing crash in Australia.

According to the paper, a unnamed New York hedge fund manager said there were doubts the strength of Australia’s property market could be sustained. “There’s a lot of scepticism in the US regarding the Australian property market, A lot of people have doubts about whether the strength of the market is going to be maintained.”

“I think it’s the case funds are shorting the banks. If you’re of the view that property is going to come off, then shorting the stocks is a very clean way to express that view. It’s an attractive trade.”

» US hedge funds dump Australian bank shares – The Australian, 5th June 2010.