Money managers under the microscope
Figures from Data Explorers today show hedge funds have again been largely right in their short positions, this time in Cadbury.
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.
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.