Quant-driven hedge fund Qube Research & Technologies has disclosed a $105m short position in Trump Media & Technology Group, the parent company of Truth Social, according to a report by Reuters, citing a regulatory filing with Germany’s federal gazette, Bundesanzeiger.

The short bet, first highlighted by alternative data firm Breakout Point, represents 2.53% of Trump Media’s free float, making it the first disclosed regulatory short position against the company. Trump Media is majority-owned (53%) by US President Donald Trump.

Qube declined to comment on the specific position, stating only that its trades are systematically driven by quantitative models and “do not reflect a specific view on the fundamentals of the company.”

The hedge fund’s bet comes as Trump Media shares have dropped 44% year-to-date, despite a retail investor-driven surge in 2023. The company, which currently holds a market cap of approximately $4.2bn, has a short interest of 4.9%, according to LSEG data.

The short disclosure makes Trump Media Qube’s second-largest short by percentage, behind only B Riley Financial.

Trump Media has seen renewed volatility in recent weeks, particularly after it filed paperwork allowing Trump’s trust to potentially sell a significant tranche of shares. Shares rallied modestly on Monday, ending up 1.6% on the day.