Capita Plunge Triggers Windfall for Short Sellers AQR, CapeView
ByCliff Asness’s AQR Capital Management and hedge fund CapeView Capital reaped a windfall on Wednesday from their wagers on a decline in shares of Capita Plc.
The outsourcing firm plunged as much as 42 percent, the most in 24 years, after its new chief executive announced plans for a rights issue and suspended dividend payouts. The shares were trading at their lowest since 2003 at 09:29 a.m. in London.
| Firm | Net Short Position (%) | Position Date |
|---|---|---|
| AQR Capital Management, LLC | 2.91 | 2018-01-22 |
| CapeView Capital LLP | 0.61 | 2018-01-17 |
| Janus Henderson Group PLC | 0.52 | 2017-12-19 |
Source: FCA
AQR increased its short position on Jan. 22 and had a $99.3 million bet against Capita, according to data compiled by Bloomberg. CapeView also raised its bearish bets earlier this month and had short interest worth almost $21 million. Short sellers sell borrowed shares and buy them back at lower price, pocketing the difference as profit.
Spokesmen for AQR, CapeView and Janus Henderson declined to comment. Capita did not reply to calls and an email seeking comment.