Short-sellers lick wounds as stock market picks up – The Times

This post was originally published on this site

Hedge funds with short positions in Britain’s biggest companies are nursing paper losses of nearly £700 million from this week’s stock market rally.

Funds had placed individual bets worth hundreds of millions that the shares in a string of leading companies, including HSBC, Rolls-Royce and J Sainsbury, will fall. Smaller companies such as Cineworld and Premier Oil have also been targeted.

However, some of the most heavily shorted stocks rose sharply in the rally this week. According to provisional figures from Ortex Analytics, a London and Wall Street data specialist, short-sellers lost £676.7 million between Monday and last night’s close. Although funds generated a return of £166.9 million yesterday as markets moved in their favour, short-sellers are still £1.3 billion out of pocket since the

This post was originally published on *this site*