The “Bad Bank” of Brighthouse

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

The “Bad Bank” of Brighthouse

Featuring Jeremy Shoykhet

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.

Published on
18 July, 2018
Topic
Portfolio Management, Micro, Trading
Duration
11 minutes
Asset class
Equities
Rating
7
Sharing

Comments

  • JS

    Jonas S.

    23 7 2018 18:27

    0       0

    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.

  • NI

    Nate I.

    18 7 2018 17:58

    3       0

    @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 7 2018 15:58

    1       0

    Good idea!

  • VS

    Valeriy S.

    18 7 2018 12:30

    1       1

    Isn't it like biggest long of David Einhorn?

  • JV

    Jason V.

    18 7 2018 10:31

    7       0

    Interesting idea. Thanks, Jeremy. It's great to see a wide variety of quality analysts contributing their research and actionable ideas. Keep them coming!