Raspberry Pi (LSE:RPI), the DIY computer-making group, has seen its shares shorted by JP Morgan just weeks after its IPO in London was hailed as a boost to the flagging stock exchange.
JP Morgan's asset management division has built a short position equal to 0.51% of Raspberry Pi (LSE:RPI)'s entire share capital, a disclosure to the FCA revealed.
It is the first investor to declare a short position in Raspberry Pi despite the company's shares having jumped by as much as 43% since it was listed on June 11.
Analysts at AJ Bell believe the decision to short the company isn't just based on making a quick return on share price patterns for new listings either.
"What’s odd is the point at which JPMorgan opened its short position. Its short against Raspberry Pi was made on 25 June, which is after the initial pullback happened in the share price," said Russ Mould at AJ Bell.
"In effect, it is betting against the current up-trend in the stock which implies it might have concerns about the business or its valuation.
"Any disruption to its supply chain could push up costs or restrict component availability – two factors which could lead to customers having to pay more for its kit.
"It is also heavily reliant on a handful of partners, principally Broadcom as a component supplier and Sony as its biggest manufacturer. Any breakdown with these relationships could be catastrophic for the business.”