Hedge funds short Maersk

Hedge funds short Maersk

The escalating threat posed by a global trade war is taking its toll on the shares of the world’s largest containerline.

Citing IHS Markit data, Bloomberg is reporting that as of last Friday, short interest in A.P. Moller-Maersk has leapt to around 6% of the company’s share capital, the highest on record since the data provider started tracking the Danish carrier’s shares in 2006.

Maersk has lost more than 20% of its market value this year on the back of struggling results.

Among many hedge funds reviewing their options is AQR Capital Management. A July 18 regulatory filing showed the firm has a short position equal to 0.5% of Maersk’s share capital.

Maersk is due to publish its second-quarter results on August 17. It warned a couple of months ago that “increased uncertainties due to geopolitical risks, trade tensions and other factors,” may affect its ability to deliver on its full-year guidance.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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2 Comments

  1. Avatar
    Andrew Craig-Bennett
    July 23, 2018 at 4:47 pm

    If Maersk sneezes, the rest of the industry has pneumonia.

  2. Avatar
    David Ewings
    July 23, 2018 at 5:34 pm

    Oops!