Hedge fund bets against Asos have hit an all time high with prominent funds on both sides of the Atlantic including Citadel and Marshall Wace shorting the fast-fashion retailer’s stock, according to a report by the Telegraph.
News of Sports Direct billionaire Mike Ashley acquiring a 5% stake in the company via Frasers Group broke last weekend and prompted an increase in short bets among a clutch of funds. The report cites regulatory filings as revealing that some 8.4% of Asos stock is now on loan to short sellers.
In total four hedge funds increased their short stakes last week, with a fifth, GLG Partners, reducing its bet against Asos.
Asos shares have been falling in price since the spring of 2021 with the company, which was valued at more than £5 billion in March 2021, now worth just £600 million.
