RE: SHORTS4 Jun 2024 06:33
(Financial Times) Hedge fund short sellers burnt by flurry of UK takeover bids
“Shorting any UK mid-cap is insane, literally insane,” said one hedge fund executive who specialises in shorting stocks. “The numbers [valuations] are just so low in the vast majority of cases that a $2bn UK company is peanuts for any mid-sized American company. Your sell case has to be unbelievably compelling and feature the stock going down at least 50 per cent”, or there is a risk you lose 50 per cent if the stock gets bid for, the person added.
They didn’t get the memo wrt DEC!