-
A hedge fund disclosed a net short position Monday in Trump Media & Technology Group.
-
QRT’s bet represents 2.5% of the Truth Social owner’s outstanding shares, valued at $105 million.
-
TMTG shares plunged this month after a filing signaled that President Donald Trump could cash out.
A hedge fund has revealed it’s betting against President Donald Trump’s media company.
Qube Research & Technologies disclosed a net short position Monday in Trump Media & Technology Group — representing 2.5% of the Truth Social owner’s outstanding shares — in Germany’s Federal Gazette. The wager is valued at about $105 million, based on TMTG’s market value of about $4.2 billion.
Breakout Point, the research firm that first spotted the filing, said in a note emailed to Business Insider that this was the first short wager against TMTG to be disclosed to regulators and QRT’s second-biggest short in percentage terms. Other short-sellers have targeted the stock in the past.
This filing was likely made to comply with Germany’s short-selling regulations, intended to increase market transparency.
QRT’s press team said in an emailed statement to BI that the firm operated a diversified, quantitative long/short portfolio and did not comment on its positions.
“Our positions are model-driven and do not reflect a specific view on the fundamental of the company,” they said.
TMTG shares tumbled to a six-month low this month after the company registered for sale shares belonging to Trump — who owns 53% of the business — and several other shareholders. TMTG didn’t immediately respond to a request for comment.
Usually, an investor who is “long” on a stock has bought it expecting it to rise, while one who is “short” is betting that it will fall.
Short-sellers borrow shares of their target company and then sell them, hoping they can buy back the shares at a lower price, return them to the lender, and pocket the difference as profit.
TMTG went public in March last year via a merger with Digital World Acquisition Corp. The meme stock has tanked 44% this year and trades more than 80% below its peak price.
Total short interest was 4.9% on Monday, Nasdaq data showed.
Read the original article on Business Insider
No Comment! Be the first one.