Ashmore Group plc (LON:ASHM), which runs an investment management business, is up today. The company is a short position of one of the best performing hedge funds of the industry, Odey Asset Management. Ashmore Group plc (LON:ASHM) is a specialist manager in emerging markets and according to today’s earnings release, in the one year period ending on June 30 the company saw $13.4 billion in inflows in its funds. This is ten times more than the inflows Ashmore Group saw in the previous fiscal year.
Odey Asset Management not doing well in asset managers
Meanwhile, Odey has a short position in 2.02 percent of Ashmore’s shares. The position was established in March of this year and has been consistently increased. Excluding today’s increase in share price of +5.5 percent, Ashmore was down -2.2 percent for the year until yesterday. Funds that have a long position in Ashmore Group plc (LON:ASHM) include Insight Investment, Cazenove Investment and Vanguard Group.
Odey also has a short in a similar company, Aberdeen Asset Management plc (LON:ADN), where shares of the asset manager are up 4.6 percent to date. Here again, Aberdeen’s shares rose 4 percent today, accounting for the bulk of this year’s gains. Seems like it was not a good day for Odey’s shorts in asset managers.
Among long positions, Odey has a 2.66 percent stake in MAN GROUP PLC (OTCMKTS:MNGPF), the largest public hedge fund in the world. Shares of Man Group are up 7 percent this year.
Tiger cubs exit Nokia shorts
In Finland, almost everyone who had short positions in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) had covered it back as the reason they were short just went out of the equation, when Microsoft Corporation (NASDAQ:MSFT) agreed to buy Nokia’s entire handset business. Last week, we were the first to break how Tiger cubs have scaled back their positions; as of now only Blue Ridge Capital has a 0.7 percent short whereas Discovery Capital has a 1.75 percent short position.
Viking Global, Lone Pine Capital and Maverick Capital cover shorts in $NOK, Discovery, Blue Ridge still holding short positions.
— Tabinda Hussain (@tabihussain) September 5, 2013
The Nokia short play ended in losses for the hedge funds as shares rose close to 40 percent on the news of Nokia’s deal with Microsoft. Steve Mandel’s Lone Pine Capital used to have a 1.4 percent short, Andreas Halvorsen’s Viking Global had 1.61 percent, whereas Lee Ainslie’s Maverick Capital had a 1 percent position. Each was covered to zero after the news of this deal broke.
Jim Chanos increases short in Ocado
Another intriguing move in short disclosures is that Jim Chanos of Kynikos Associates is again increasing his short in Ocado after progressively reducing it from 5.2 percent of the retailer’s outstanding shares. Ocado Group PLC (LON:OCDO) rose close to 50 percent a few months back after it announced a 25 year partnership with Wm. Morrison Supermarkets plc (LON:MRW). Ocado was a favorite short of hedge funds, being the most shorted stock in UK at that time. Chanos has increased the position slightly for the very first time on Sep 5, after reducing it since May 10.
Here also, Odey Asset Management has a position; the fund holds 1.66 percent of the company’s shares in a bullish bet. Ocado is up 321 percent YTD.