The Bad Bank of Brighthouse

Published on
July 18th, 2018
Topic
Micro, Trading, Portfolio Management
Duration
11 minutes
Asset class
Equities

The Bad Bank of Brighthouse

Trade Ideas ·
Featuring Jeremy Shoykhet

Published on: July 18th, 2018 • Duration: 11 minutes • Asset Class: Equities • Topic: Micro, Trading, Portfolio Management

Jeremy Shoykhet of the Active Owners Fund is sounding the alarm bell on Brighthouse Financial’s business model. In this interview with Brian Price, Jeremy makes the case that the MetLife spinoff is made up of potentially troubling assets. He also explains why a short position on Brighthouse could make a highly attractive hedge for a broad portfolio. Filmed on July 16, 2018.

Comments

  • JS
    Jonas S.
    23 July 2018 @ 18:27
    Very difficult to see this trade working if the yield curve doesn’t continue to flatten. The entire US life space is completely oversold and any pick up in US 10yr yields and/or the absence of LTC or mortality blowups at 2q will see the space squeezing in my view.
    • JS
      Jeremy S.
      30 July 2018 @ 18:33
      thats part of the thesis - i think yield curve will invert as cycle turns and recession risk rises
  • NI
    Nate I.
    18 July 2018 @ 17:58
    @Valeriy - yes, Greenlight has a big position in BHF. The last 13-F shows 11,040,000 shares which I believe to be their #2 holding. It's risky to bet against Einhorn, but then again if the broad market were to decline you probably enjoy concentrated aggressive selling. Greenlight obviously sees hidden value.
  • LT
    Lucas T.
    18 July 2018 @ 15:58
    Good idea!
  • VS
    Valeriy S.
    18 July 2018 @ 12:30
    Isn't it like biggest long of David Einhorn?
  • JV
    Jason V.
    18 July 2018 @ 10:31
    Interesting idea. Thanks, Jeremy. It's great to see a wide variety of quality analysts contributing their research and actionable ideas. Keep them coming!