Hedge fund ExodusPoint takes short position in Deliveroo after disappointing IPO
Hedge fund ExodusPoint Capital Management has reportedly taken a short position in Deliveroo after the delivery firm’s disastrous market debut.
The New York hedge fund’s bet makes up approximately 0.56 per cent of Deliveroo’s shares, Financial News reported.
The short position, which could be worth as much as £26m based on its closing price, marks the first big public short of Will Shu’s firm since its disappointing start in March.
Deliveroo made its debut with a 390p offer price before plunging as much as 30 per cent, wiping £2bn off its valuation. Shares have continued to fall and it is now trading at around 249p.
Advisers claimed the sharp dip in the price was a result of short-sellers, which borrow stocks and sell in the hope of profiting from a drop in price. They claimed at least three hedge funds had taken an early short position.
There had been speculation last month that Odey Asset Management had taken a short position on Deliveroo’s first day of trading.
ExodusPoint’s short position was based on Breakout Point’s analysis of German regulatory data as of 10 May.
The short position is not visible on the Financial Conduct Authority’s website, despite a number of regulators requiring investors to publicly disclose short positions making up 0.5 per cent or more of a company’s shares.
ExodusPoint was contacted for comment.
Deliveroo’s market debut had been hotly anticipated given it was London’s biggest IPO sine Glencore in 2011.
Its offer price came in at the bottom end of its pricing range after a string of fund managers gave the company the cold shoulder over concerns with the firm’s economics as well as riders’ working conditions.