Days before gold and silver underwent massive declines, Hedge Funds ‘Tiger cub’ Robert Citrone’s Discovery Capital disclosed a 0.8 percent short in Anglo American plc (LON:AAL) (OTCMKTS:AAUKY). Anglo American has major exposure in mining of base metals like iron and copper, additionally the company is also involved in the exploration of platinum group metals.
Anglo American plc (LON:AAL) (OTCMKTS:AAUKY)’s exposure in the gold is limited, but being a China dependent operation, it is likely that its bad days will soon come. Iron ore’s prices fell in the bearish zone in this week and judging by the over -5 percent decline in Anglo’s shares today, the miner was hit hard by the disappointing PMI data from China that showed the first decline in manufacturing activity in the past seven months.
Anglo American Amounted To $262 Million
Speaking of Discovery’s short in Anglo American plc (LON:AAL) (OTCMKTS:AAUKY), which amounted to $262 million at the time when it was disclosed, its shares are now down close to 6 percent. This gives Discovery a decent $15 million profit on its short which by the looks of it will increase in the near term.
To see all hedge fund short positions in UK, visit European Stock Short Positions.
Hedge Funds Racing To Cash In The Mining Slowdown
In other disclosures from UK the rise in mining shorts is clearly visible, a number of large hedge funds disclosed negative positions in some favorite mining shorts and some new names in the sector. Adage Capital disclosed a short in Vedanta Resources plc (LON:VED), another metals and mining company. The shares of Vedanta are up 10 percent since Adage Capital revealed the short position, however they are down 3.8 percent today on weak Chinese manufacturing data. As we have discussed before, Vedanta Resources plc (LON:VED) has been a short of Highbridge Capital and AQR Capital.
AQR Capital disclosed a short in Eurasian Natural Resources Corporation (LON:ENRC) on May 16, which has exposure in iron ore, aluminum, copper and cobalt. The shares are down 6 percent YTD. AQR also took a short position in BowLeven PLC (LON:BLVN) on the same day, the company is an oil & gas explorer. At the same time TT International covered its short in the company on May 13, netting a decent profit here, as shares declined 12 percent in TT’s period of holding.
Ennismore Fund Management disclosed a short in Iofina plc (LON:IOF), a natural gas and associated iodine explorer. Man Group Plc (LON:EMG)’s GLG Partners disclosed a short in New World Resources PLC (LON:NWR), which is coke and coal producer for steel sector.
Further reading Iron Ore Falls, Einhorn And Chanos Profit From Shorts