Boohoo Group PLC (AIM:BOO) and ASOS PLC (LSE:ASC) were the two most shorted companies in the UK on Monday, according to new analysis from global exchange-traded products issuer GraniteShares.
“Retailers look vulnerable in the UK, as the country faces a rough economic outlook arising on the back of the worst cost of living crisis in a generation,” said Will Rhind, founder and chief executive officer of GraniteShares.
“It is no surprise retailers dominate the list of the most shorted stocks, as institutions hope to profit from falling share prices.”
Approximately 7.21% of Boohoo’s stock was shorted by seven investment firms on 23 October, the analysis showed.
The largest shorted position in the retailer was held by Eleva Capital SAS, at 1.7%.
Another retailer, ASOS, had 7.14% of its stock shorted by eight fund managers on Monday, while 6.33% of the stock in home improvement company Kingfisher PLC (LSE:KGF) was shorted by seven funds.
Metro Bank Holdings PLC (LSE:MTRO) and Hargreaves Lansdown PLC (LSE:HL.) were the fourth and fifth most shorted companies on that day, with 6.3% and 5.15% of their stock held by three and six investment firms respectively.
According to the spot analysis, Man Group PLC (LSE:EMG)'s GLG Partners (NYSE:GLG) LP held the highest number of short positions on the London Stock Exchange at 46, followed by Marshall Wave LLP with 25 and BlackRock Investment Management Limited with 16.