Hedge funds back off Breville, feel the pain

Hedge funds back off Breville, feel the pain

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There were 10.3 million Breville shares reported as sold short at January 18, the most recent data point available from ASIC, worth 7.22 per cent of its issued equity or a combined $215 million.

If you exclude Premier Investments’ 25 per cent stake, it’s worth about 10 per cent of Breville’s free float.

Hedge funds have been backing out of the trade since early November, when Breville short positions peaked at 9.2 per cent of issued equity, and look like they’re headed lower. The stock’s up 24 per cent this month.

The hardcore Breville watchers (like Keirath) are hanging out for results from rival De-Longhi later this week and Electrolux next week. Breville’s first half numbers are due on February 14.

Anthony Macdonald co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years’ experience as a business journalist and worked at PwC, auditing and advising financial services companies. Connect with Anthony on Twitter. Email Anthony at a.macdonald@afr.com

Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com

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