Lang: Why we went short on autos before emissions scandal erupted

Flipped autos from long to short book

Ardevora's Jeremy Lang flipped exposure to the auto sector in his £353m Global Equity fund from the long book to the short book ahead of the Volkswagen emissions scandal, on the view risks in the sector were increasing.

The manager said three years ago the fund had significant positive exposure to autos and this was still the case towards the end of last year. However, earlier in 2015 rising risk indicators led him to abandon his long positions and introduce a short in Swedish carmaker Volvo.  "We had exposure to the auto sector on the long book last year but our research earlier this year suggested the risks were going up, so we emptied out and added a short in Volvo.  Ardevora's Lang: It took us 20 years to work out the missing piece of the puzzle "We do not like the industry as a whole. It is ...