(Reuters) – A Dallas hedge fund was among investors betting on a fall in the price of ARM Holdings when SoftBank Group’s <9984.T> surprise $32 billion bid sent shares in the British chip designer surging nearly 50 percent.
The set-back for such hedge funds, who position themselves to profit from swings in stock prices, comes at a difficult time for the industry as many peers have seen their performance slide and some investors have even demanded their money back.
Data from Britain’s regulator, the Financial Conduct Authority, shows that Maverick Capital had a substantial outstanding short position in ARM of roughly 1.2 percent of its shares when the SoftBank bid was announced on Monday.
