Hedge Fund Short Positions in Finland: Tiger Cubs Short Nokia ~ market folly

Wednesday, November 14, 2012

Hedge Fund Short Positions in Finland: Tiger Cubs Short Nokia

Continuing our coverage of hedge fund short positions in Europe, next up is Finland.  New European rules are obliging hedge funds to disclose information about the most carefully guarded part of their business activities: short positions.

Since November 1st when the EU Regulation on short positions came into force, there has been a deluge of information from financial regulators in EU countries giving information on short positions across all market sectors.

Public disclosure is required for net short positions of shares that reach 0.5% of the issued share capital of the company concerned and again at each 0.1% increment above that.  Additionally disclosure is required publicly when the position subsequently falls below 0.5%.  Here are the latest disclosures in Finnish markets:

Hedge Fund Short Positions In Finland Disclosed

AQR Capital: Short -0.9% Konecranes, -0.9% Nokian Renkaat, -0.6% Rautaruukki

Axial Capital: Short -0.74% Sanoma

Blue Ridge Capital: Short -1.34% Nokia

Carlson Capital: Short -0.93% Outotec

Coatue Management: Short -0.8% Nokia, -0.62% Stora Enso

Eton Park Capital: Short -0.95% Nokian Renkaat

Lansdowne Partners: Short -1.57% Metso

Lone Pine Capital: Short -0.57% Nokia, -0.92% Stora Enso

Maverick Capital: Short -1.7% Nokia, -2.8% Outotec, -1.53% Stora Enso

Odey Asset Management: Short -0.6% Kemira

Pennant Capital: Short -1.38% Outokumpu

SAC Capital: Short -0.6% Neste

Viking Global: Short -2% Nokia

Obviously, there are many 'Tiger Cub' hedge funds short Nokia.  There's an interesting dichotomy here as some value investors have gone long the troubled handset maker due to valuation, while many GARP (growth at a reasonable price) investors short the company due to its falling market share.

Many Tiger Cubs often go long the 'best of breed' companies in various sectors and short the struggling companies in that same sector.  As an example, many have been long Apple (AAPL) and short Nokia (NOK) as smartphone market penetration exploded and iOS gained market share while Nokia struggled to find a winning strategy.

To see more hedge fund shorts, head to our other coverage:

 - Hedge fund short positions in the UK

- Hedge fund short positions in Germany

- Hedge fund short positions in France

- Hedge fund short positions in the Netherlands

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