Two more funds shorted Solutions 30

Two more funds shorted Solutions 30

After Muddy Waters Capital LLC, two more hedge funds popped-up with a short > 0.5% ("big short") in French company Solutions 30.*

As of the latest disclosures, AKO Capital has a 0.61% short and Lansdowne Partners has a 0.88% short in Solutions 30. At a market capitalization of about €915 million, these shorts translate to about €5.5 million and €8 million. Both shorts appeared on the last trading day of May, on 2019-05-31.

When it comes to further shorts in EU IT Services & Consulting sector, AKO Capital also holds a 1.3% short in Danish Netcompany Group, while Lansdowne Partners holds a 0.98% short in Spanish Amadeus IT Group. Accoridng to our records, Lansdowne Partners holds two more big shorts in France, one of which is a 1.44% short in Rallye, while AKO Capital has four more big shorts in France.

Muddy Waters Capital LLC put a 0.5% short position in Solutions 30 on May 17. This position was reported during the weekend by the French financial regulator, the AMF. Following this disclosure, share price dropped more than 30% on intraday basis on Monday, May 20 and closed about 25% lower on the same day (ref. Business Insider). On May 17, Solutions 30 closed at €12.2, while on June 3 it closed at €8.8. This translates into a drop of about 27.8% during the observed period.

Muddy Waters Capital LLC short position marked the first time that we recorded a short >0.5% in Solutions 30.

Muddy Waters Capital appears rarely in our EU short selling records. Previously, Muddy Waters Capital popped-up with short positions in IQE, Stroer, Casino Guichard-Perron and Rallye. Positions in IQE and Stroer were quickly reduced:

  • a 0.93% short in IQE appeared on 2018-02-07, but was reduced to 0.68% on 2018-02-08 and then to 0.48% on 2018-02-09, and
  • a 0.66% short in Stroer appeared on 2016-04-20, but was reduced to 0.16% on 2016-04-21.

Short positions in Casino Guichard-Perron and Rallye were held above the disclosure threshold for several weeks in the period Dec'15-Jan'16.

Muddy Waters briefly commented on Twitter about their Solutions 30 short position (see on Twitter here and here). 

Solutions 30 issued a press release on May 20, taking notice of Muddy Waters Capital LLC short position and reaffirming its confidence in its activities and business model (ref. GlobeNewswire).

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* Note: Presented short selling data is based on European net short position data which is disclosed to the public when short positions at least equal to 0.5% of company issued share capital. Presented data and analytics is as of available on 2019-06-03.

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