- Advertisement -
- Advertisement -

Related

Hedge Funds Expect H&M To Fall Further

Latest Report

This year’s Alternative Fixed Income report from HedgeNordic explores how institutional investors and asset managers are navigating this new reality, balancing yield and resilience amid shifting credit cycles, structural change, and evolving sources of return.

Stockholm (HedgeNordic) – Swedish retailer Hennes & Mauritz shares plunged 33 percent in 2017, marking their worst year since the beginning of this century. The share has continued its slump in the first two months of 2018 and is currently down close to 17 percent since the begining of the year. However, short data compiled by Bloomberg reveals that hedge funds are expecting the stock to fall further.

Short interest in H&M is now above 9 percent of outstanding shares, according to Markit data. A year ago, it was only 4 percent. Hedge funds betting against the Stockholm-based company include AQR Capital Management, according to data compiled by Bloomberg.

H&M is now the most shorted stock on the Swedish benchmark OMXS30 index after Getinge, a manufacturer of sterilization and disinfection products for the healthcare industry.

Analysts that cover H&M are also pessimistic about the prospects for the stock, with the average price target of estimates collected by Bloomberg falling to 136.4 kronor. That is about 3 percent below the company’s current share price.

Of the 36 analysts who cover H&M and are tracked by Bloomberg, two have buy ratings. Nineteen are advising clients to sell. This is the lowest level of buy ratings since 1999.

 

Picture source

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

A Story of Data in the Age of Data Deluge

Transtrend started as a research project in 1989. We had bought data and computers, hoping something could be done with that. So, that’s what...

Proxy P’s Bet on Traditional Utilities Amid AI-Driven Power Surge

Since its launch in late 2018, fund boutique Proxy P Management has managed a directional long/short equity fund focused on renewable energy and energy...

November Halts Nordic Hedge Fund Momentum

After six consecutive months of gains, the Nordic hedge fund industry recorded a slight dip in November, edging down 0.3 percent on average. With...

Trade-off Between Illiquidity and Rebalancing Premium

In the search for diversification and higher returns, institutional investors worldwide have steadily increased their exposure to illiquid asset classes such as private equity,...

Diversification in the Era of Monetary Reset

Diversification has long been a cornerstone of investing, designed to balance risk across different markets and asset classes. But with fiat currencies under persistent...

Three Years In, Norselab’s Flagship Fund Reaches More Radars

After years of co-managing Alfred Berg’s high-performing high yield fund, Tom Hestnes has spent the past three years proving his strategy in an alternative...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.