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Careful,
Some are pure shorts and some may be held in conjunction with CBs. I can't comment on their other positions.
I can only comment on what I have heard with regard to HUR.
They were heavily involved in the PMO CB Arbitrage play a few years ago and it's right up their street.
You can also think of it as insurance in the unlikely event that HUR's cashflow dries up.
GLA.
Hi Biffadog
How can you be so sure that Marshall Wace's short is connected to the convertible bonds and is part of a CB Arbitrage strategy ? Marshall Wace have numerous short position open in various companies on the FCA short list, would they all be connected to convertible bonds ? or might some be pure short bets on the share prices going down.
Biffadog. I will have to do my homework.
But how can you be so sure that Marshall Wace 's short is connected to the convertible bonds ?
3842000 buy somebody has faith
Conversion price of the bonds was initially set at $0.52 (=32p+25% premium at a conversion rate of $1.30 to the £ )or circa 40p
https://beta.companieshouse.gov.uk/company/05245689/filing-history
25th June entry
I assume the convertible bonds can be traded in which case they will have a price. The CB price will be linked to the ordinary share price so they are probably dirt cheap and therby offer a fantastic yield. Maybe Marshall Wace have increased their CB holding.
Thanks Biffa. Explanation from investopedia
https://www.investopedia.com/terms/c/convertible-bond-arbitrage.asp
would explain it to you in detail but it's been covered on here numerous times over the years.
And I nearly got it... but just couldn’t quote grasp it.. long and short positions and balancing risk I settled with.
Careful,
You need to read up a bit on Convertible Bond Arbitrage.
These small adjustments in the Marshall Wace short position are all part of a CB Arbitrage strategy.
I would explain it to you in detail but it's been covered on here numerous times over the years.
Nothing to worry about.
GLA.
I don't know what the shorting history has been like on HUR but its not very reassuring that they are increasing their short position when we are at this price.
0.71% short = 14 million shares they've borrowed, sold and looking to buy back at a lower price
Just been reading about Marshall Wace. Still think a hit is a good idea! You lost are so well behaved.
Deep joy.
has increased from 0.60% to 0.71% as of 16.01