Shorters fan the flames of Manchester United
06 March 2014 Manchester
Image: Shutterstock
Short interest in the US listing of Manchester United (MANU) is at a record high of 1.97 percent of the total shares.
Alex Brog, the director of corporate communications at Markit, said that while this figure might not sound high in absolute terms, it is 19.25 percent of the freefloat.
He added that demand to borrow the company is high, with over two thirds of what can be borrowed from the lending programmes on loan鈥攚hich means it would be hard and very expensive to short any more of the company.
Short interest in the club has been at a high for the last few months. Odey Asset Management took out a short 0.78 percent position in December 2013, to the tune of approximately $22 million, and the hedge fund Tremblant also had a 0.81 percent short position at that time.
It was reported recently that the Paul Marshall-led hedge fund, Marshall Wallace, was another firm that had been shorting shares in the club.
Paul Marshall made up part of the 鈥楻ed Knight鈥� consortium, who unsuccessfully attempted to wrestle the club from the American Glazer family in 2010, calling the family real estate developers 鈥渨ith no connection to the city鈥�.
It has unarguably been a disappointing nine months for the club so far, with the team looking a shadow of the title-winning side of last season.
Since Sir Alex Ferguson鈥檚 departure, the club has struggled for form鈥攚ith all the signs pointing towards Manchester United failing to qualify for the Champions League for the first time since the 1995-96 season.
This would be a disaster for the management, as Champions League football would be sure to attract big names to the club in the summer.
Alex Brog, the director of corporate communications at Markit, said that while this figure might not sound high in absolute terms, it is 19.25 percent of the freefloat.
He added that demand to borrow the company is high, with over two thirds of what can be borrowed from the lending programmes on loan鈥攚hich means it would be hard and very expensive to short any more of the company.
Short interest in the club has been at a high for the last few months. Odey Asset Management took out a short 0.78 percent position in December 2013, to the tune of approximately $22 million, and the hedge fund Tremblant also had a 0.81 percent short position at that time.
It was reported recently that the Paul Marshall-led hedge fund, Marshall Wallace, was another firm that had been shorting shares in the club.
Paul Marshall made up part of the 鈥楻ed Knight鈥� consortium, who unsuccessfully attempted to wrestle the club from the American Glazer family in 2010, calling the family real estate developers 鈥渨ith no connection to the city鈥�.
It has unarguably been a disappointing nine months for the club so far, with the team looking a shadow of the title-winning side of last season.
Since Sir Alex Ferguson鈥檚 departure, the club has struggled for form鈥攚ith all the signs pointing towards Manchester United failing to qualify for the Champions League for the first time since the 1995-96 season.
This would be a disaster for the management, as Champions League football would be sure to attract big names to the club in the summer.
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