Private investors have settled against large money by buying defense companies that larger investors have sold short. These shares are, for example, Germans Hensoldt and Color Group as well as a French satellite company Eutelsat.
Shortly, or short, means that the investor quotes shares for payment and sells them forward. After that, the investor hopes for a price bill, after which he can buy the shares and return them to make a profit.
If the courses are rising instead of invoice, the investor may have to buy them back at a more expensive, which will cause him losses.
Reported on the subject Financial Media Financial Times.
The companies mentioned by financial media have been much better successful in recent weeks than the European defense industry, often examined by Aeronautics and the Stoxx Europe Aerospace & Defense section following the defense industry.
Many aviation companies are also involved in defense. For example, known for aircraft Airbus joint venture ArianeGroup Prepare intercontinental missiles that can be equipped with nuclear tips.
The index has risen by over 14 percent a month, for example, French -based aircraft parts Latecoere has risen by more than 58 percent. According to FT, Latecoere is also a heavily shorted share.
Strategi: Reminds of 2021 Mania
According to financial media, experts have said that smaller investors have deliberately purchased Marshall wan, Millenium and Qube Research & Technologiesin Shortta shares.
Large bank Société Généralen strategy Roland Rising commented to FT phenomenon that resembles the mania of 2021, which encouraged the forum in Reddit to buy, among other things GameStopin Share.
At that time, the Gamestop share rose sharply, which forced Melvin Capital to close the shorttime position, causing significant losses to the fund.
Kalyan states that there is not as strong a phenomenon in the rise of short shares as in the case of Gamestop, but the mechanism is similar.
“Enemy” in Darsana
The French forum Bourcasa has written that votelsat has a “enemy” investment company Daraysasawho, like Blackrock, has a shorttime in Eutelsat, FT said in a news published last week.
“If no one sells, shorters are forced to buy more … Come on, and don’t lose,” another commenter in the forum wrote.
There have also been discussions on Reddit. Equity brokers have also noticed that trading volumes have been high.
For example, a German broker Flatexdegiron According to Eutelsat’s trade volumes, 70 times the last month in the last month. Renk Group’s trading volumes are fourfold.
Eutelsat’s last -time fierce price rising has not gone unnoticed, the bank Bernsteinin the leader of the small and medium -sized shares of the following department Aleksander Peterc Comment to FT.
“The small -scale shares had really high shorts. The rise of the eutensati played alarm clocks, so (funds) closed their posts in other sites very quickly.”
Marshall Wace, Qube, Darsana, Millennium and Blackrock refused to comment on the Financial Times.
News agency Bloomberg According to the eutelsat, the shorttopositis keep J.P. MorganQube and Darsana. In the Renk Group, position is found in Qube and Capital Fund Managementilta. In Hensoldt, a shorttime can be found in Qube.
European defense companies have risen strongly in the early part of the year, with Europeans concerned about the role of the United States in defending the region. In Europe, it has also been decided to invest more in defense.