Tim Wilson claims he has sold out of his bet against the share market for ‘modest profit’ | Tim Wilson
Tim Wilson sold out of his “terrible” bet against the Australian stock market, claiming the shadow financier profited from the investment he said he would donate to an LGBT rights advocacy group in Iran.
Guardian Australia first reported on the investment, a leveraged product that makes profits when the ASX 200 index falls, last year. This was seen as an unusual investment for a politician, given the product profits from market crashes are linked to the performance of the economy.
A Sydney-based financial adviser previously told Guardian Australia the product was “not mainstream and not widely popular” and had proven to be a “terrible” investment for the Liberal MP.
The Liberal MP still had investments even after his appointment as shadow treasurer, according to updated interest records.
Wilson told parliament on Wednesday that he sold the investment, called the Betashares Australian Stock Strong Bear Complex, and submitted an unpublished statement.
“While I made a modest profit on the sale, this was mostly outpaced by the finance chief’s active inflation agenda,” Wilson said.
“I donated it to the International Railroad for Queer Refugees, which helps people who have had to flee their countries from regimes such as the Islamic regime in Iran.”
It’s not immediately clear how Wilson profited from the investment, given that it lost about 75% of its value between his purchase in early 2020 and his most recent registration filings in February.
Wilson’s office has been contacted for comment.
Recently the Labor government had criticized Wilson for his investments.
The Liberal MP’s office had previously refused to disclose the size of the investment, which is often used as a short-term hedge against market declines.
Wilson told parliament he initially bought the shares to hedge against a “black swan” event linked to the Covid outbreak.
In market terms, a “black swan” event refers to an unpredictable, rare event that has a catastrophic effect.
Although the market sold off shortly after Wilson made the investment in early 2020, subsequent disclosures indicate that he held on to that investment during the market recovery.
The product takes a “short” position, taking a profit when the market declines, and gears up to magnify gains and losses.
