- Advertisement -
- Advertisement -

Hedge Funds Expect H&M To Fall Further

Report: Systematic Strategies

- 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

Cleaves Navigates Red Sea Disruptions

Stockholm (HedgeNordic) – Since the onset of the latest Israel-Hamas conflict in October last year, attacks by Houthi rebels in Yemen targeting cargo ships...

RFP: Irish Investor Seeks UCITS-Compliant Commodities Fund

Stockholm (HedgeNordic) – An Irish institutional investor is seeking to invest between €25 to €50 million a commodities fund for its fund of funds....

Improved Environment for Single Shorts and Options Protection

Stockholm (HedgeNordic) – Marcus Plyhr’s cautious stance on markets helped Norron Select minimize losses in 2022, closing the year with a low single-digit decline...

Strong May Performance for Nordic Hedge Funds

Stockholm (HedgeNordic) – The Nordic hedge fund industry is experiencing one of its strongest years on record, marked by seven consecutive months of positive...

New Billion Club Member

Stockholm (HedgeNordic) – The Nordic hedge fund industry is welcoming a new member to its exclusive €1 billion club: Asgard Fixed Income Risk Premia...

Coeli Partners with Peter Norhammar for Real Estate Fund Launch

Stockholm (HedgeNordic) – Swedish asset manager Coeli is partnering with real estate specialist Peter Norhammar and NRP Anaxo Management to launch a new long/short...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -