Tiger cub Robert Citrone’s Discovery Capital initiated a new short position in Banco Sabadell SA (MCE:SAB) (PINK:BNDSY). Boston based Wellington Management Company also opened a short in Banco Sabadell. Both funds are holding the same number of shares short which roughly amount to $30 million each at 0.5 percent of outstanding shares. Banco Sabadell, one of Spain’s largest banks, has a chunk of bad loans that have made Banco Sabadell’s survival difficult. However the bank still has reserves with which it continues to make acquisitions. Banco de Sabadell SA (MCE:SAB)’s shares have fallen 21.7 percent year to date.
Discovery Capital has previously held a short in Banco Popular Espanol SA (MCE:POP). Citrone’s existing short bets in the banking sector, other than Sabadell, include Bankinter SA (MCE:BKT) (PINK:BKNIY) and Banca Popolare di Milano (BIT:PMI). Fund’s exposure in Sabadell is larger than any of these.
Barry Rosenstein’s JANA Partners’ opened a new short in Acciona SA (MCE:ANA) (PINK:ACXIF), a construction, real estate and transportation company in Spain and then covered it to below 0.5 percent later. Egerton Capital also covered the short in Acciona a while back. Oceanwood Capital recently initiated a new short in Acciona SA (MCE:ANA) (PINK:ACXIF).
Meanwhile in Finland, we reported a small-cap miner which has made waves among shortsellers, admittedly not as small as it is is now after losing 85 percent of its market value. Now all of those hedge funds have covered their positions almost entirely and have taken whatever profits they could from the base metals miner, which then fell dramatically from 93.25 to 31 pence on March 11. All funds covered their positions on April 16 and 17. Talvivaara Mining Company Plc (LON:TALV) (HEL:TLV1V) (FRA:TM7) released Q1 earnings today. Take the example of Sothic Capital which took a 1.52 percent position in Talvivaara Mining Company Plc (LON:TALV) (HEL:TLV1V) (FRA:TM7) on Dec 5, 2012 when TALV traded at around 95 pence and exited on April 16 when TALV was down to 16.3 pence. Sothic’s gross profits can be as high as 82 percent on the trade. Almost the same estimation stands for the other short seller of the miner, Polygon Global Investors. Morgan Stanley (NYSE:MS), BlackRock, Inc. (NYSE:BLK) and others have also held a short position but their timing was not so right.