Tim Wilson, a Liberal MP and shadow minister for small business, has experienced significant financial losses due to a long-standing bet against Australia’s sharemarket. According to his register of interests disclosed in August, Wilson holds a leveraged investment that profits when the benchmark ASX 200 index declines. This investment, known as the BetaShares Australian Equities Strong Bear Complex, is an inverse exchange-traded fund (ETF) that uses gearing to amplify both gains and losses, offering up to a 2.75% gain for every 1% drop in the ASX.
Wilson’s strategy is unusual for a politician, as betting against the market can be perceived as a lack of confidence in the national economy. A spokesperson for Wilson explained that he originally purchased these shares as a hedge during the COVID-19 pandemic but has maintained them due to what he perceives as poor economic policies from the Albanese government. The exact size of Wilson’s investment remains undisclosed, though the spokesperson noted it is “less than the value of the subsidies the Teals voted to give to coal and gas companies.”
Understanding Short Positions and Market Strategies
Short positions like Wilson’s are typically used by investors as a hedge against broader portfolios, protecting gains from other investments during periods of market volatility. Phillip Bures, a senior financial planner with Nestworth Financial Strategists, explained that such products are usually held for short durations to guard against downturns.
“Typically, it’s a very short-term instrument held for less than a year,” said Bures. “If he’s held it for that long period of time, he would have lost quite a bit of money on that product.”
Wilson’s entry into the short trade coincided with a record high of the ASX 200 index in February 2020, just before the COVID-19 pandemic caused global stock markets to plummet. Had Wilson sold his position by the end of March 2020, he could have doubled his investment. However, as global governments implemented stimulus measures, share markets rebounded, including in Australia, leading to a significant recovery and subsequent record highs driven by artificial intelligence technology advancements.
The Rise and Fall of Wilson’s Investment
Despite the initial potential for profit, Wilson’s investment in the BetaShares ETF has depreciated by more than 70% from its early 2020 value. This decline reflects the broader market rally over the past two years. The MP’s register of interests also lists investments in an international equity index fund and a micro-investing platform, alongside residential and investment properties, indicating a diversified portfolio beyond his short position.
Wilson first entered federal parliament in 2016, lost his seat in 2022, and regained it in 2025. His financial strategy, particularly the decision to maintain the short position, has drawn attention due to its atypical nature for a politician and the substantial losses incurred.
Implications and Future Considerations
The situation raises questions about the financial strategies employed by public officials and the potential conflicts of interest that may arise. While Wilson’s spokesperson attributes the decision to hold the investment to economic policy criticisms, the substantial losses highlight the risks associated with leveraged inverse ETFs.
As markets continue to evolve, the performance of Wilson’s investment will likely remain under scrutiny. The broader implications for political figures engaging in such financial strategies may prompt discussions on transparency and ethical considerations in managing personal investments while holding public office.
Looking ahead, Wilson’s financial decisions and their outcomes could serve as a case study for the complexities and potential pitfalls of short selling in volatile markets. As the economic landscape shifts, the strategies employed by investors, particularly those in public service, will continue to be a topic of interest and debate.
