Funds Hub

Money managers under the microscope

Shorting Kazakhmys

Interesting to see increased short interest in Kazakhmys.

RTR28LU5This week we highlighted Cazenove hedge fund manager Tim Russell’s caution about the miner’s valuation and the consistency of its earnings.

According to Data Explorers, the short base has been rising steadily over the past three months to 0.9 pct from 0.1 pct.

While still up more than six-fold on their price a year ago, Kazakhmys’s shares have generally been on the way down in the past two weeks from their 12-month high. The short interest suggests others share Russell’s view.

VW drops as hedge funds move in

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Volkswagen ordinary shares are down today after yesterday’s report of increased short positions.

rtr26v0yStock out on loan, a good indication of shorting, has doubled over the past month to 2 pct of total issuance, according to figures from Dataexplorers.

This season’s trendy shorts

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2008 may have been the year of shorting imperilled financials, but 2009 could be the year of shorting companies with too much debt or those bearing the brunt of the recession.

rtr1skfhNumbers from Dataexplorers show Consumer Discretionary and Industrials are among the sectors with the most stock out on loan in the UK– a good indicator of short-selling activity.

Not so good old Yellow Pages

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Hedge Hub readers shouldn’t have been too surprised by yesterday’s 15 percent slump in Yell’s share price.

rtr20jx8The directories firm — the one behind the UK’s Yellow Pages — faces months of talks with banks and shareholders after yesterday saying it plans to restructure its roughly 4 billion-pound debt burden for the second time in nine months.

Indebted companies – short or long?

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Hedge funds and other investors are shorting stocks laden with the biggest debts, according to stock lending research group DataExplorers, betting they may struggle to refinance themselves.

rtr1w38nAccording to the research, Yell Group and Debenhams are among the top ten non-financial firms with the biggest net debt to equity ratios out of the 300 largest listed companies in the UK.

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