6th Jun 2022 18:06
(Alliance News) - Ennismore Fund Management Ltd has taken a large short position in C&C Group PLC as money managers brace for the cost of living crisis's sting, according to data from SEI Novus released on Monday.
SEI Novus said the largest short position in the last week of May was registered by Ennismore in Magners cider owner C&C, accounting for 3.29% of total aggregated European short positions by size.
In mid-May, C&C reported a swing to annual profit as trading restrictions eased and demand for its drinks rose. However, the Dublin-based manufacturer, marketer and distributor of alcoholic drinks warned that it was "susceptible" to further increases in its cost base, which would prompt further price increases.
Industrial stocks were the most shorted in May, ending the month accounting for just under 24% of total short activity in Europe, followed by consumer discretionary stocks at around 20%.
SEI Novus noted that industrials and consumer discretionary have "consistently" been the most shorted sectors so far this year.
"Ennismore Fund Management's large position in Irish drinks company C&C Group was the most unique movement we noticed last month - not only its size relative to other positions, but also its concentration within a single manager. Data for the month of May also implies that money managers are expecting the cost of living and energy crises to worsen as they continue to heavily short industrials and consumer discretionary stocks," said Andrea Gentilini, head of SEI Novus.
SEI Novus's aggregated data set covers over EUR30 billion in short positions from more than 150 managers.
By Lucy Heming; [email protected]
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