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Home » Popular Markets » Equities » Short of the Week: Boohoo is in the sights of several hedge funds

Shares in Boohoo [LSE:BOO] are still struggling, and it looks like hedge funds and short traders are now building positions against the stock of this embattled retailer.

As predicted on this site months ago, labour conditions among  Boohoo's suppliers have contributed to a perfect storm for the company, where long only fund managers are being forced to dump the stock due to ESG issues.

As we have mentioned before, ESG is becoming a big issue with many major fund management groups, and it is the 'S' in ESG - social - that is proving a tough nut for Boohoo management to crack. Fund managers are having to answer to internal policy guidelines on this, and head for the door, and this is where short traders can smell an opportunity.

 

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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