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Bristlemoon Capital shorts REA Group amid Australia housing slump bet
The hedge fund led by George Hadjia expects REA new listings to fall 5% to 10% in FY27 versus guidance for flat to slightly lower volumes.
Australian hedge fund Bristlemoon Capital has taken a short position in property listings company REA Group, according to a report by Hedgeweek citing the AFR.
The fund, led by George Hadjia, argues that a downturn in Australia’s housing market could weigh on REA’s earnings and expects the stock to have scope to fall toward A$98, implying downside of almost 40%.
Bristlemoon also projects REA’s new listings to decline by 5% to 10% in FY27, compared with the company’s guidance for flat to slightly lower volumes, with its bearish thesis centered on valuation risk if weaker housing activity and earnings expectations prompt a reassessment.