Short sellers sniff Regal as index dreams slip away
Regal Partners is under pressure after its $220 million Opthea stake soured, dragging down its share price, unsettling investors and derailing its ASX 300 hopes.
Short sellers are circling Regal Partners after the listed fund manager’s disastrous Opthea investment halved its share price, cutting short its run at the ASX 300 index and raising fresh questions about its risk management practices.
This marks the first major test for Phil King’s alternative investment firm, which earlier this year appeared poised to join the index — a move that would have compelled passive funds to buy Regal shares.
Instead, Regal has slumped on the ASX, shedding 40% of its market capitalisation, missing the April index rebalance, and attracting scrutiny from rival investors. The latest ASIC data shows short sellers held around 1% of Regal stock in mid-April — up from just 0.18% three weeks earlier.
While the short interest remains lower than other ASX targets, the sharp rise comes at a moment of rare vulnerability for the fund manager, with Regal’s share price struggling at all-time lows. The fall has halved the value of staff equity and threatens to cut into deferred bonuses.
