// Ocado tops list of ‘most-shorted’ stocks as short-sellers turn on the online grocer
// More than six percent of the grocer’s stock is out on loan to hedge funds, the highest level in almost five years
Ocado has topped the list of ‘most-shorted’ stocks as short-sellers turn on the online grocer after it swung to a £501m loss.
More than six percent of the grocer’s stock is currently out on loan to hedge funds, which will make money if the share price falls.
The online grocer is now top of the Financial Conduct Authority’s list of ‘most-shorted’ stocks in London.
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The retailer’s shares soared during lockdown as consumers shopped online.
However, last month, the online grocer reported sales fell 3.8% to £2.2bn in what it called a “challenging market” as the benefits of the trend towards online shopping sparked by the pandemic lockdowns wound down and shoppers flocked to discounters amid the rising cost of living.
Independent retail analyst Richard Hyman told This is Money: ‘If you look back before the pandemic then Ocado was often massively shorted – this is a return to form.
“I think the thing is that the market doesn’t have any of the confidence in Ocado’s business model that the leadership team and founders have.”
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