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The £700m big short on Corbyn – hedge funds are short-selling big companies at risk of nationalisation
Hedge funds have laid hundreds of millions of pounds of bets against companies that could come under attack if Jeremy Corbyn gains power.
More than £700million of shares have been ‘shorted’ across major companies that could face nationalisation or the loss of public sector contracts.
Short-selling allows investors to profit from share price falls. The bets do not necessarily indicate that hedge funds think Corbyn will win, but they could stand to benefit if he wins next month’s General Election.
Hedge funds have laid hundreds of millions of pounds of bets against companies that could come under attack if Jeremy Corbyn gains power
Data from the Financial Conduct Authority shows that nine per cent, or £225million, of the shares of Babcock – a defence industry outsourcer that could lose work under Labour – are being shorted.
Water firms Severn Trent and United Utilities have bets of £157million and £62million respectively taken out against them. Royal Mail has a £114million short against it.
Others that could be affected include British Gas owner Centrica and outsourcer Capita.
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