- Advertisement -

Related

Hedge Funds Expect H&M To Fall Further

- Advertisement -

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

Nordic CTAs Bounce Back as Trends Strengthen

The NHX CTA Index rebounded strongly in August, supported primarily by gains in currencies and equity markets. Most managers and sub-strategy groups finished the...

AI Isn’t the Transformation. Your Hedge Fund Operating Model Is.

By Ashish Shrestha, Senior Solutions Consultant at MAIA Technology: Artificial intelligence is moving quickly from experimentation towards implementation across the hedge fund industry. For...

Volt Diversified Alpha Posts Second-Best Month

Volt Diversified Alpha Fund delivered an estimated 5.8 percent gain in August, its second-best monthly performance since launching in early 2017, as its systematic...

The Lifecycle of a Trade: Where Nordic Managers Win or Lose Their Edge

Placing the trade is the easy part, but it is only as good as everything around it. The edge is rarely won at the...

Diversification is Easy to Buy, Hard to Get: The Liquid Alternatives Test

By Luc Dumontier, CIO Global Asset Management, iM Global Partner: Rarely have global portfolios carried such concentrated exposure to a single bet. US equities...

Unlocking a Third Active Lever

By Steven Braun at Newfound Research and Return Stacked® Portfolio Solutions: Long-only active management traditionally has two levers for generating excess returns. The first...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -