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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