Blue Sky’s cloudy day

FUND manager Blue Sky Alternative Investments’ stock was pummelled after a shortseller claimed the Brisbanebased company was inflating asset values and charging “extortionate fees”.

Some of the short-seller’s claims were disputed by people named in the research. Blue Sky, whose accounts are flagged as giving a true picture of the business, meanwhile locked its shares in a trading halt while it tried preparing a detailed rebuttal. “From its initial review of the report, Blue Sky notes that there are a large number of factual inaccuracies throughout,” the company said. The attack by Californiabased Glaucus Research, which makes money when shares fall in target companies, marks the latest short-selling activity against Australian listed businesses.