Funds Hub
Money managers under the microscope
Hedge funds avoid sticky situation in Cadbury
Figures from Data Explorers today show hedge funds have again been largely right in their short positions, this time in Cadbury.
Shares in the world’s second-biggest chocolate and sweets maker shot up around 38 percent today after it snubbed a 745 pence a share bid but many funds had long since closed their shorts.
Data Explorers’ figures show stock out on loan — a strong indication of short interest — in Cadbury fell from from more than 4 percent in May to just 1 percent by last Thursday.
However, this had crept up from around 0.5 percent in July, indicating a few funds had been betting on a price fall, perhaps to balance out long positions in more cyclical stocks that were rallying.
VW drops as hedge funds move in
Volkswagen ordinary shares are down today after yesterday’s report of increased short positions.
Stock 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.
Shorts suffer in the rally
For many money managers who bet exclusively that securities will fall, July may go down in history as their personal Waterloo — .
When performance data is announced in the next few days, the numbers will show high single-digit or even double-digit losses at so-called dedicated short-sellers, industry analysts and investors forecast.
