Owners of AMP Ltd (ASX: AMP) shares rejoice – this fundie thinks the company’s future is bright.
Regal Funds Management chief investment officer Philip King is reportedly bullish on the stock, which hit an all-time low of 88.5 cents in September.
In fact, the firm has bought into the embattled financial services company.
At the time of writing, the AMP share price is 95.7 cents, 1.81% higher than its previous close.
Here’s why this expert thinks it could be a buy.
Are AMP shares about to have their heyday?
Regal has reportedly abandoned its short position in AMP and is betting on the company’s share price growth.
King told the Australian Financial Review the fund recently purchased the stock due to its confidence the company’s new leader can turn its tumble around.
The publication stated the fund shorted the company during its tough times.
As many will remember, AMP was dragged through the mud during the Financial Services Royal Commission.
Additionally, it hit a bump in the road when the Australian Investments and Securities Commission (ASIC), hit the company with civil proceedings in May. ASIC alleged the company charged deceased customers fees for life insurance and financial advice.
Throughout the seemingly endless controversies between 2018 and today, the AMP share price has tumbled more than 80%, potentially earning short-sellers a tidy profit.
But King believes AMP’s grass is starting to look a little greener. The AFR quoted him as saying:
We were short for many, many years, and we think the new CEO is doing all the right things, and it’s the start of a turnaround story.
People think the situation is worse than it really is and we think they can retain a lot of their current investors, and there’s a very, very solid brand and business.
The company’s new CEO, Alexis George took the reins in August after a stint as deputy CEO of Australia and New Zealand Banking Group Ltd (ASX: ANZ).
As of 26 November, just 2.6% of AMP’s shares are in short positions. For context, 9.17% of the company’s stock was being shorted in August 2019 – its highest point of the last 3 years.