Wallace: German short-selling ban could spread into other markets

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Germany's decision to ban naked short-selling could be replicated in other markets as regulators panic, Gartmore's Ben Wallace believes.

Wallace, who runs the $630m (£438m) Gartmore AlphaGen Octanis hedge fund and co-manages the £319.4m UK Absolute Return Oeic, says he does not understand the reason behind Germany’s ban as naked short-selling is so uncommon among European hedge funds. He also warns the block could spread to other economies if regulators fear short-sellers will move from German markets to their own. “I find it slightly strange they have done this and it has probably irked quite a lot of governments out there,” Wallace says. “On my side of the world, we cannot naked short-sell anyhow, and I would say ...

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