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Short sellers target Asos and Boohoo following CMA greenwashing investigation

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Hedge fund short sellers have again been betting against fashion retailers Asos and Boohoo following an investigation into greenwashing at the two companies by the Competition and Markets Authority (CMA), according to a report by Charged.

Hedge fund short sellers have again been betting against fashion retailers Asos and Boohoo following an investigation into greenwashing at the two companies by the Competition and Markets Authority (CMA), according to a report by Charged.

Following an announcement on 29 July, the CMA is investigating whether sustainability claims made by the e-tailers are misleading consumers and has threatened legal action if it uncovers malpractice.

With share prices in both companies having fallen by around 75% since news of the probe broke, short-sellers including Marble Bar Asset Management, GLG, CapeView Capital, and AHL Partners have subsequently upped their bets against the firms. The report cites a report by Thisismoney.co.uk as revealing that Marble has upped its short holding in Asos by 01.12% and GLG by 0.03%, and approximately 5.98% of the company’s stocks now shorted. 

Boohoo, meanwhile currently has 7.27% of its shares out on loan, with CapeView Capital and AHL Partners having both upped their bets against the business on 1 August by 0.16% and 0.04% respectively.

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