Odey Discloses Ocado Group Position: Hedge Fund Battleground Stock ~ market folly

Tuesday, June 4, 2013

Odey Discloses Ocado Group Position: Hedge Fund Battleground Stock

Crispin Odey’s Odey Asset Management has disclosed a 5.04% holding in London listed Ocado Group (LON: OCDO).  Whilst it was known from their letters that Odey were long Ocado, the size of the stake was unknown until now. 

Fellow UK-based hedge fund Lansdowne Partners also hold a large portion of Ocado stock, with a 5.72% holding that they disclosed in November 2012.   

Ocado: Hedge Fund Battleground Stock

Ocado has been somewhat of a battlefield for large hedge funds.  While the UK funds listed above are long, numerous big US-based funds are short, including Jim Chanos' Kynikos Associates at -3.44% and John Griffin's Blue Ridge Capital at -1.17%.   

The longs have had the best of it in recent months.  A short covering rally since December has seen     the net short position in Ocado shares decline from 17% to 11% and the stock rise by over 3 times from 80p to 260p.   

Late last year, we highlighted hedge fund short positions in the UK for those interested.

About Ocado Group

Per Google Finance – “Ocado Group plc is a United Kingdom-based holding company. The Company is an online grocery retailer. The principal activity of the Company, along with its subsidiaries, is retailing and distribution of grocery and consumer goods within the United Kingdom. The Company owns Ocado Holdings Limited, which holds the entire interest in Ocado Limited. The principal activity of Ocado Limited includes retailing and distribution of grocery and consumer goods. On February 9, 2010, the Company acquired Ocado Limited. The Company's wholly owned subsidiaries include Ocado Holdings Limited, which is an holding company; Ocado Limited, which is engaged in retail and distribution; Ocado Information Technology Limited, which is engaged in intellectual property, and Ocado Cell in Atlas Insurance PCC Limited, which is an insurance company. Ocado Holdings Limited is a 100%-owned subsidiary of Ocado Group plc.”

blog comments powered by Disqus