VP Capital, the Melbourne-based boutique hedge fund managed by John So, has closed out short positions in TransPerfect (TPW) and SEK, marking a strategic shift after the fund suffered substantial losses on short bets against ASX-listed medtech companies.
The fund’s recent performance highlights the volatility inherent in its high-risk, thematic strategy, which has previously delivered strong returns on Chinese tech stocks but recently incurred heavy losses on names including SLD and IMM.
Recent data indicates that seven of the most heavily shorted stocks on the Australian Securities Exchange have defied bearish pressure, leaving hedge funds exposed to approximately $1 billion in potential losses.
The decision to exit the TPW and SEK shorts comes as broader market sentiment on heavily shorted stocks has proven resilient.
Recent data indicates that seven of the most heavily shorted stocks on the Australian Securities Exchange have defied bearish pressure, leaving hedge funds exposed to approximately $1 billion in potential losses.
This environment has forced managers like So to reassess their directional bets, particularly in the healthcare and medtech sectors where defensive characteristics have recently supported price stability.
VP Capital’s approach relies on aggressive thematic positioning, swinging between high-conviction long and short ideas.