Attack leaves Blue Sky in tailspin

FUND manager Blue Sky’s value plummeted by a third yesterday, following a renewed attack that alleged the former Queensland market darling was hiding behind confected secrecy agreements.

The latest attack from short-seller California-based Glaucus, which makes money from share prices falling, smashed Blue Sky Alternative Investments’ stock by $2.85 to $5.62.

Shares have halved in value from $11.43, wiping more than $450 million off its market capitalisation since last Wednesday.

That was when Glaucus levelled an initial criticism against Brisbane-based Blue Sky, whose 80 funds invest in assets from childcare to student accommodation. Yesterday’s rout came despite Blue Sky telling the ASX that the shortseller’s latest criticisms raised no new information nor identified any errors. Glaucus last week claimed the fund manager’s stock was worth $2.66, alleging it had been manipulating investment performance and overstating the amount of assets under management.