GLG Partners has become the first hedge fund to reveal a wager against S4 Capital, the online advertising business set up by Sir Martin Sorrell in 2018 following his acrimonious split from WPP, according to a report by the Telegraph.
GLG, a division of Man Group, has revealed a £5 million short bet against the company, equating to around 0.5 per cent of the company’s shares which have halved in value over the past year and are down over 38 per cent so far in 2022.
S4 Capital has grown rapidly through a series of acquisition since launch reaching a market valuation of 6,7 billion in September 2021. But an accounting problem in March, which saw its annual results delayed by a month, followed by a hiring freeze and reduction in profit forecasts from £154 million-£165 million to £120 million, spooked investors and the company is now valued at just under £1 billion.
Despite its problems though, most analysts reportedly still give S4 Capital a “buy” rating.
