New York-based hedge fund Millennium Management has built a short position worth £35m in Metlen Energy & Metals, just two months after the Greek metals and energy group debuted on the London Stock Exchange and entered the FTSE 100, according to a report by the Financial Times.
Metlen’s move from Athens to London, with a market capitalisation of €6.7bn, was intended to tap a deeper pool of capital and allow index-tracking funds to hold its stock. Despite opening at €48.68 in London, shares have slipped to €45.60, creating an opportunity for short-sellers. Millennium’s short now represents roughly 0.6% of Metlen’s shares.
While Millennium, which manages over $79bn in assets, has not commented on its strategy, such positions can also be part of arbitrage trades for firms with dual listings like Metlen, which retains its secondary listing in Athens.
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