Hedge funds have amassed a record number of short positions against European stocks, in a bet that the region will be hard hit by the economic fallout from the Iran war.
The number of short disclosures against stocks listed in Europe increased to nearly 12,000 in the first three months of this year, according to figures from data provider Breakout Point. That is the highest level since short disclosure rules were introduced in 2012.
Short positions are required to be disclosed when they reach 0.5 per cent of a company’s issued share capital. The figures do not equate to 12,000 individual short positions as they could include funds adjusting positions multiple times, but they are a proxy for short-selling activity.