October 7, 2022

Sellers’ short betting against Boohoo reached an all-time high last week as the winter cost-of-living crisis looms even for budget fashion retailers.

– Advertisement –

Positions created by hedge funds that make money from falling stock prices rose to 8.7%, or about £45m, before falling back to 8.1% on Friday.

– Advertisement –

It’s perhaps a bold bet, as stocks have already fallen by two-thirds this year due to the Competition and Markets Authority’s greenwashing investigation.

– Advertisement –

Out of fashion: Boohoo shares have already fallen by two-thirds this year

But Marshall Wace, Citadel, Capeview and Ennismore are among the well-known hedges who believe Mahmoud Kamani’s fast fashion firm has yet to fall.

The appointment of Kourtney Kardashian Barker, who will help Boohoo learn “more about sustainability and style,” as an ambassador seems to have done little to allay those concerns.

Aston Martin has also struggled with record high rates of short positions, having borrowed 7.4% of the company’s shares earlier this week, although that fell to 6.5%.

In The Style faced riots at annual meeting

Another retailer, In The Style, may get a bloody nose at its annual meeting this week after an ISS proxy advisor urged investors to oppose its payment arrangements.

ISS reports that the long-term bonus for boss Sam Perkins is independent of goals and spreads relatively quickly.

The only condition for obtaining shares worth £425,000 at current prices is that Perkins continue to operate.

He joined the Wery firm in January.

Crispin Odie is still in IGas

When Crispin Audie’s hedge fund invested in shale minnow IGas in August, it was something of a gamble.

See also  Downgrade your property statistics online to reduce your property taxes

By the time Odey Asset Management’s 3.7% stake was revealed, the group’s shares had already tripled since the start of the year.

Now the share is 7 percent.

Rumors that Liz Truss had lifted her moratorium on fracking led to a sharp increase in IGas shares.

But AIM-listed stock has since gone in the opposite direction, with Odey’s most recent increase in share coming a day before another sharp drop driven by a management change that saw boss Stephen Bowler leave “by mutual consent.”

Long-term supporters have higher incomes. Its shares are still up 466 percent this year.

The fate of Darktrace is still privately owned

Takeover talks between Darktrace and U.S. buyout group Thoma Bravo may have collapsed this month, but the fate of the cybersecurity firm still rests with private equity, according to one source close to the deal.

Thoma Bravo, whose investors are believed to have disagreed on the price, can’t put forward a new offer for another six months even if she wanted to.

But the source said the £2.5bn group is likely to be invested by a private investor in the next 12 months.

Another question is whether the city will welcome another British tech firm buyout.

Author: Amy-Jo Crowley