Hedge funds are betting on the possibility that Manchester United’s poor start to the season on the pitch will be replicated by the performance of the club’s shares.
Odey Asset Management, one of the UK’s most prominent funds, has revealed a short position worth about $5m in the Red Devils. The hedge fund has about 310,000 shares, which represents under 1 per cent of the club’s class A shares, out on loan. New York hedge fund Tremblant Capital also has a 0.81 per cent short position in the club.
Hedge funds are betting on the possibility that Manchester United’s poor start to the season on the pitch will be replicated by the performance of the club’s shares.
Odey Asset Management, one of the UK’s most prominent funds, has revealed a short position worth about $5m in the Red Devils. The hedge fund has about 310,000 shares, which represents under 1 per cent of the club’s class A shares, out on loan. New York hedge fund Tremblant Capital also has a 0.81 per cent short position in the club.
However, the general trend has been towards a reduction in such positions. The number of shares out on loan as a percentage of the free float peaked at just under 10 per cent earlier this year and is now just under 6 per cent, according to data from Markt.
Shares in Manchester United have enjoyed a modest rise since the club floated in New York last summer. The shares have risen by about a fifth over the last twelve months.
Regardless of one pitch performance, the club’s commercial operation has been highly successful. With its sophisticated marketing, it is generating ever increasing revenues that benefit the bottom line.