Telegraph.co.uk – One of the world’s biggest hedge funds is betting against Saga in the wake of the company’s high-profile flotation that has left hundreds of thousands of private investors out of pocket.
GLG Partners, which is part of Man Group, has taken a short position of 0.61pc in the over-50s insurance and holidays group, according to a filing with the Financial Conduct Authority.
Funds borrow stock to take short positions so that they profit when a share price falls. Saga’s shares have dropped almost 7pc below the float price since unconditional trading in the company began last Thursday.
As a result of that fall, retail shareholders, the majority of whom were Saga customers, will have seen almost £19m wiped off the value of their holdings.