Short sellers turn to fast fashion

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Boohoo was the UK’s top-selling stock as of August 26, 2022, with 8.22% of its shares held short by ten segregated funds, while ASOS came in third place, with short sellers holding 6% of its shares in six funds.

‘Boohoo’s risks are already factored in’: Fashion on the wrong side of ESG

Fast fashion has regularly grabbed the headlines, especially in light of its weak ESG credentials. Last month, Morningstar revealed that the sector, which produces more emissions than all international flights and shipping combined, lags behind on climate change, human rights and environmental standards. business ethics.

In July, the Competition and Markets Authority revealed that ASOS and Boohoo were being investigated for “misleading environmental claims”.

Cineworld, which was regularly among the best-selling stocks in the UK, has dropped significantly in the list despite its recent woes, including possible bankruptcy, sitting in 24e place only 2.76% of its shares held short by three investment companies.

New Holland Capital is its biggest detractor, holding 1.22% of the shares sold short.

B&Q owner Kingfisher split the fast fashion giants, slipping to second place with 7.2% of its shares held short by five segregated funds.

Fevertree, backed by Nick Train, found itself in the crosshairs, with 5.1% of its shares shorted by two funds, while Majestic Wine snuck up higher in fifth position, with four funds holding 5 .2% of its shares short.

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Hargreaves Lansdown has been the beneficiary of a change in sentiment with eight different investment funds holding a short position on the platform totaling 6% of its shares, while Ashmore Group completes the picture in tenth place, with four fund holding 4.5% of its short shares. .

GLG Partners was the most aggressive short manager, holding 39 individual short positions in UK companies, followed by Marshall Wace with 32 and BlackRock Investment Management with 26 short positions.

Will Rhind, Founder and CEO of GraniteShares, said: “Rising inflation and rising interest rates highlight the impact of the cost of living squeeze with the inevitable impact on stock prices of businesses that depend on consumer spending.”

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