Australia’s top hedge fund, Arnott Capital, believes the viral Labubu craze is nearing its peak and could soon collapse — and it plans to profit from the downturn.
In a note to investors last week, the firm revealed its intention to short the stock of Pop Mart, the company behind the hugely popular dolls.
Pop Mart, based in China and listed in Hong Kong, has seen its market value soar from around $10 billion in 2020 to over $65 billion today,
Strong demand and limited supply have fueled scalpers to snap up the dolls and resell them at a profit