New analysis from ETP provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK and US stocks, reveals that as of 12th July 2021, Cineworld Group, the world’s second-largest cinema chain, was the most shorted UK listed company.
Some 7.5 per cent of its stock was held short by six investment firms, with New Holland Capital LLC the largest short position with 2.42 per cent of the company’s shares.
The next most shorted UK listed companies were Sainsbury (J) Plc, Petropavlovsk Plc, Hammerson Plc and Domino’s Pizza Group Plc where the respective short positions were 6.9 per cent, 6.2 per cent, 5.8 per cent and 4.8 per cent respectively. Among the stocks tracked by GraniteShares ETPs, Vodafone Group is the 38th most shorted stock, with two fund managers holding short positions representing 1.5 per cent of the outstanding stock.
In terms of which fund managers had the most short positions on UK listed companies, the analysis reveals GLG Partners LP had the highest number with 18. This was followed by BlackRock Investment Management (UK) Limited, Jupiter Investment Management Limited, Marshall Wace LLP, and AQR Capital Management LLC with 11, 11, 11 and 10 short positions respectively
Will Rhind, Founder and CEO of GraniteShares, says: “Shorting stocks used to be the exclusive pursuit of institutional investors, but sophisticated individual investors are now increasingly doing this. The value of funds invested in our 3x short single stock ETPs listed on the London Stock Exchange was around USD35 million on December 1st 2020, but this increased to around USD140 million by July this year.
“There is still a high degree of market uncertainty around the Covid-19 pandemic, and the strength of the global economic recovery, which is contributing towards a more attractive environment for shorting certain stocks.”