Markit data showed that "short interest" - which measures the number of shares lent to speculators betting on a fall in the stock - in Berkeley had surged to nearly 5 percent of the company's total shares available for loan, against just 2 percent on March 1 and 0.8 percent at the start of 2016.
"This bear raid, which comes on the heels of a sharp retreat in Berkeley's shares since mid-December, represents the first time in over five years that short sellers took a position of about 5 percent of shares outstanding in a UK-listed homebuilder," said Markit analyst Simon Colvin.
An interesting, but ultimately, repetitive posting that doesn't really give me any additional information about this share or your thinking on it. Perhaps if you declared your position on/in it that would help. If I could understand where you were coming from, where you are at and where you are trying to get to I might understand better what you are saying.
Are you long/short or on the sidelines ... are you waiting to get in or out or just watching?
I disagree with the general tone and findings of the article that is quoted. Odey Asset Management have held short positions in BKG since 2014 and recently actually decreased their short position, not increased it as the article implies. Overall OAM are hardly the scintillating agressive shorting outfit that the write up alludes to. More rather they are using the short position to hedge their portfolio against a down turn in the property market ... in other words they are using it as insurance against loss rather than a money making opportunity for profit.
Bluemountain and Anchorage are more recent entrants to the list of shorters but their positions are hardly large -- typically 0.50-0.75%.
Overall this shorting activity is not really something to be concerned about. It's more likely to be funds covering their backs against BREXIT and uncertainty in the property market than a belief in BKG collapsing specifically.
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