The Nikkei NIKKEI 225 (Nikkei Indices: NI225) is now down 15 percent since touching its peak price on May 22. The selling gained further energy after the Federal Reserve clearly conveyed its decision to end the easing cycle, if all else goes as planned. This is an appropriate time to see which large hedge funds have chosen to hold short positions in Japanese equities and could be getting closer to bagging some profits as the selling gains further steam. Check out some hedge fund short positions we disclose below.
Good Time To See Hedge Funds’ Short Positions In Japanese Equities
Pine River Shorts Sony Corp
Pine River Capital, a very successful credit-focused hedge fund, has a short position in none other than Sony Corporation (ADR) (NYSE:SNE) (TYO:6758). Pine River Fixed Income, a $3.9 billion fund, holds 3,148,700 shares short ($62 million dollars) of the technology and entertainment corporation. Pine River has held the short since before January 2013, and month-to date-shares are down 6 percent. Sony Corporation (ADR) (NYSE:SNE) (TYO:6758) is the latest target of Dan Loeb’s activism where he is pushing the company to spin off its entertainment arm, a call that has not received much favor from the top management.
Pine River Fixed Income was one of the best performers of 2012 returning in excess of 34 percent and was up 8.15 percent to the end of May. Other short positions of the same fund include KDDI Corp (TYO:9433), a telecom company. Pine River Master Fund holds a short in NIPRO CORPORATION (TYO:8086), a medical technology company.
Shorts From Lansdowne, AQR and D.E Shaw
Lansdowne Partners through its funds, Eureka and European Equity Fund, holds 5.69 million shares of Kawasaki Kisen Kaisha, Ltd. (OTCMKTS:KAIKY) (TYO:9107) short. The company is involved in marine transportation. Lansdowne’s other short bets in Japan are Hitachi Construction Machinery Co., Ltd. (TYO:6305). The hedge fund has a massive short portfolio in Europe.
Louis Bacon’s Moore Capital held a short position in Osaka Gas Co Ltd (TYO:9532).
Cliff Asness’ AQR Capital has several shorts in Japan, the most notable of which are Hitachi Metals, Ltd. (TYO:5486), where AQR holds 3.79 million shares short. AQR also has shorts in MITSUBISHI GAS CHEMICAL COMPANY,INC. (TYO:4182), TOKYO STEEL MANUFACTURING CO., LTD. (TYO:5423), Mitsui Chemicals, Inc. (TYO:4183) and Kobe Steel, Ltd. (OTCMKTS:KBSTY) (TYO:5406). Nippon Sheet Glass Company, Limited (TYO:5202) also seems to be a popular short—D.E Shaw and AQR Capital both hold a short position in the company.
BTG Pactual Fund is shorting 698,600 shares in Kakaku.com, Inc. (TYO:2371), an e-commerce company. Caxton International holds a short position in Nisshin Steel Holdings Co Ltd (TYO:5413). GLG Market Neutral Fund and D.E Shaw hold short positions in KADOKAWA GROUP HOLDINGS, INC. (TYO:9477), a video content provider and publisher.