Hedge funds bet $1.14bn against Flutter ahead of TSG merger
London-listed operator is second most shorted UK stock as 13 leading hedge funds back share price to fall
Flutter Entertainment is the second most shorted stock in the UK after prominent hedge funds backed the operator’s share price to fall further with combined bets of $1.14bn.
The London-listed operator is FTSE’s second most shorted stock by percentage, with 13.3% of its share base on loan to short-sellers.
The figure has risen sharply from the 5% reported in October 2019, when bets against the firm totalled just $359m.
Flutter is subject to more individually disclosed shorts than any other UK firm after 13 hedge funds made disclosed bets against the operator. Bets must be worth more than 0.5% to be disclosed to UK financial watchdog, the FCA.
Vodafone is the only stock more bet-against in dollar terms, with bets currently totalling $1.34bn of its market cap, while Premier Oil is the most bet-against company in percentage terms (19.7%).
Asset management firm UBS O’Connor LLC has taken the most significant position against Flutter after shorting 1.6% of stock worth a total of $137.2m.
Westchester Capital Management, Alpine Associates Management, BlackRock Advisors and AQR Capital Management complete the top five having all taken short positions of more than 1.2%.
Flutter Entertainment last week reported a 20% online revenue rise for Q1 ahead of its £10bn merger with Toronto-listed The Stars Group.