{"id":2267,"date":"2004-01-30T00:00:00","date_gmt":"2004-01-30T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"proof-is-in-the-pudding-when-it-comes-to-lending-out-stock-city-trader","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/01\/2004\/proof-is-in-the-pudding-when-it-comes-to-lending-out-stock-city-trader.html","title":{"rendered":"Proof is in the pudding when it comes to lending out stock ; City Trader"},"content":{"rendered":"<p>WHEN everyone else was bracing themselves for turkey and plum pudding last month, City fund managers were busy borrowing stock they did not own in the hope of pocketing a profit.<\/p>\n<p>  That is the message from December figures released by stock market settlement firm CrestCo, showing institutional investors lent 20.3% of shares in supermarkets group Wm Morrison, 23.4% of pubs  operator Mitchells Butlers and 20.2% of Man Group.<\/p>\n<p>  Heavy stock lending often reflects short-selling by hedge funds hoping to profit from a share-price fall.<\/p>\n<p>  Stephen Grainger, product manager at CrestCo, says heavy stock lending can also be connected to the &#8220;voting season&#8221;as institutions borrow stock from other funds ahead of a company&#8217;s annual meeting  to increase their voting power on a contentious resolution.<\/p>\n<p>  One expert says: &#8220;If you have allowed for any special factors and still see the percentage of lending increasing on a stock, you can conclude some large investors are taking a negative view.&#8221;<\/p>\n<p>  But the hedge funds might get it wrong, in which case a rising share price would squeeze their short positions, forcing them to buy shares to reduce their exposure, driving up the price even faster  Angus McCrone has a spread-bet website at: www.onewaybet.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WHEN everyone else was bracing themselves for turkey and plum pudding last month, City fund managers were busy borrowing stock they did not own in the hope of pocketing a profit. That is the message from December figures released by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2267","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/2267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=2267"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/2267\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=2267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=2267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=2267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}