4 ASX-listed stocks Plato is shorting in 2023 (and their secret to generating alpha)

Plato Investment Management's latest fund has a unique process to help investors spot the mountains hiding beneath the molehills. Having analysed every historical corporate scandal and failure, Plato's Dr David Allen built up a list of 126 red flags to avoid landmines on the long side and identify opportunities for the portfolio's shorts.

Unlike Plato's other income-focused funds, the Plato Global Alpha Fund is a long/short strategy dedicated to generating alpha throughout the cycle. The team isn't mandated to stick to a particular style - like value, growth or quality. Instead, the Fund is focused on generating consistent returns so those in the accumulation phase can grow their assets over time.

"I just learnt the other day that the great Don Bradman, the best cricketer of all time, only hit a handful of sixers in his career. And his whole philosophy is, you don't get out if you just hit the ball on the ground," Allen explains.

"That's very much akin to our strategy. We're looking to consistently eke out alpha every day, every week, every month, rather than betting on any one stock or one thematic."

In this exclusive interview, Allen shares why the Australian market has an unusual number of red flags right now, his recommendations for selectively playing the global recovery we have witnessed over the last few months, and his top long positions right now.

And, in what is very rare for long/short managers, he also names four stocks he is currently shorting right now.

Note: This interview was recorded on Thursday 4 May 2023. You can read an editorialised summary below:

https://www.livewiremarkets.com/wires...