market folly

Continuing our coverage of hedge fund short positions in Europe, next up is Italy. European rules are forcing 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 about 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%.  

Italy has introduced a number of short selling bans in recent years but since September 2012 the short selling ban on covered shorts has been lifted. It’s interesting that even when a country like Italy has a track record of introducing short selling bans and when the possibility of another ban at some point in the future must be reasonably high, many hedge funds continue to establish short positions.


Hedge Fund Short Positions Revealed in Italy

Hedge Fund / % Of Shares They Are Short / Name of Company


AQR Capital: -1.1% Mediaset, -1% Finmeccanica SPA, -1.32% A2A

Bocage Capital: -0.53% Saras Raffinerie Sarde

Citadel Europe: - -0.86% Prysmian

Dalton Strategic Partnership: -0.88% Diasorin

Egerton Capital: -1.06% Banca Monte Dei Paschi Di Siena, -0.75% Mediaset

Marshall Wace: -0.69% Banca Monte Dei Paschi Di Siena, -0.62% Pirelli, -0.93% Mediaset

Odey Asset Management: -0.9% Tod's, -0.53% Banca Monte Dei Paschi Di Siena

Pelham Long Short Master Fund: -0.68% Fiat S

Children's Investment Fund: -1.43% Fiat

Tiger Global Management: -0.55% Arnoldo Mondadori Editore

Viking Global Investors: -0.91% Assicurazioni Generali

Wellington Management: -0.54% Banca Carige, -0.58% Banca Monte Dei Paschi Di Siena


As you can see above, there are two names that are seemingly consensus shorts among the funds listed: Mediaset and Banca Monte Dei Paschi Di Siena.  There are also a few funds short Fiat and we recently posted up thoughts from Children's Investment Fund manager Chris Hohn on his Fiat short.



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  

- Hedge fund short positions in Belgium

- Hedge fund short positions in Finland

- Hedge fund short positions in Sweden

- Hedge fund short positions in Denmark 

- Hedge fund short positions in Poland