C&C Group PLC (LSE:CCR), the owner of cider brand Magners, was the most shorted stock in Europe last month, according to data and analytics company SEI Novus.
The largest short position in the Irish soft drinks manufacturer was registered by hedge fund Ennismore Fund Management in the final week of May.
This was the biggest short position taken in a European company by size, accounting for 3.29% of short positions that week.
Consumer discretionary stocks comprised nearly a fifth of registered European short positions in May, a close second to industrial stocks.
The consumer and industrial sectors have consistently been the “most shorted sectors” in 2022, the data and analytics company said.
An investor takes a short position when they anticipate a drop in the share price of a company.
Marshall Wace had the greatest short exposure of all hedge funds and managers in May, holding a 21.18% of total registered short positions that month, SEI Novus said.
Andrea Gentilini, head of the analytics firm, said: “Ennismore Fund Management’s large position in Irish drinks company C&C Group was the most unique movement we noticed last month - not only its size relative to other positions but also its concentration within a single manager.
"Data for the month of May also implies that money managers are expecting the cost of living and energy crises to worsen as they continue to heavily short industrials and consumer discretionary stocks.”