Several brand name hedge funds are ramping up bets against GVC Holdings, the sports betting and online gaming group home to the likes of Ladbrokes Coral and Foxy Bingo, as the UK gambling sector faces sweeping regulatory changes from April.
Several brand name hedge funds are ramping up bets against GVC Holdings, the sports betting and online gaming group home to the likes of Ladbrokes Coral and Foxy Bingo, as the UK gambling sector faces sweeping regulatory changes from April.
Citadel Advisors, the long-running US manager led by Kenneth Griffin, has a 0.6 per cent bet against GVC, while Citadel Europe has a 1.23 per cent short position, according to regulatory disclosures.
AQR Capital Management, the USD186 billion US quantitative hedge fund established by ex-Goldman Sachs trader Cliff Asness, and P Schoenfeld Asset Management (PSAM), the event driven-focused manager, which specialises in merger arbitrage and special situations trades, are also short on GVC.
GVC’s share price has slipped in recent weeks, falling from 931.6pp on 12 February to 825pp on Monday morning.
Elsewhere, Kuvari Partners has a 0.53 per cent bet against William Hill Plc.
Hedge funds’ increasingly bearish stance on the UK’s betting industry comes as the sector faces a potential squeeze from tough new rules designed to curb problem gambling.
The UK Gambling Commission, the industry watchdog, earlier this year announced a ban on the use of credit cards in online betting, effective from 14 April.
