Inflation in Europe and the United States has soared, and when the central bank is raising interest rates wildly, big short sellers have stepped on it. Bridgewater Fund, which has an asset size of US$151 billion, bet more than US$5.7 billion to short European stocks, becoming the largest short seller in European stocks.
As of the close of European stocks on Wednesday evening, the US Federal Reserve announced a 0.75% interest rate hike, and Bridgewater Fund, which has assets of US$151 billion, has bet more than US$5.7 billion to short European stocks.
According to data released by Breakout Point, an information website that tracks short-selling positions of European companies, the number of short-selling European companies in Bridgewater has increased to 18, including global lithography giant ASML (headquartered in the Netherlands), chip giant Infineon (Infineon) Technologies, headquartered in Munich, Germany), energy giant TotalEnergies Group (French energy group), electrical giant Schneider Electric (French multinational), BNP Paribas (BNP), Spanish bank Banco Santander, SA), Deutsche Börse Group, etc. Ivan Cosovic, founder of Breakout Point, said a position of this magnitude is completely abnormal.
Big short sellers are good at finding prey. The European Union agreed to impose a ban on Russian oil imports. International oil prices soared. In the euro zone, which is dependent on Russian oil, inflation hit a record high. The US Federal Reserve raised interest rates sharply by 0.75%. , the pan-European Stoxx 600 index fell to its lowest point since January 2021, the German, Italian, British and Swiss stock markets all fell by more than 3%, the French stock market fell by more than 2%, and the Swiss stock market was close to a bear market. The Bank of England also raised interest rates the next day, and European stocks fell for consecutive days. Greg Jensen, co-chief investment officer at Bridgewater, said the weakness in major financial markets would not be “transitory.”
Other financial institutions, including BlackRock fund manager Alister Hibbert and Lansdowne Partners’ Peter Davies, were also bearish on equities, also expecting further losses in global equities.
Bridgewater Fund, the world’s largest hedge fund, has launched several short-selling campaigns of similar scale in the global financial market. period.
But the second big stock market did not save Bridgewater from the disaster brought about by the epidemic. Bridgewater lost about $1.21 billion in 2020, according to investment firm LCH Investments.