Ortex: Wirecard cost to borrow skyrocketing

Hedge funds are “not done yet” with Wirecard, according to analysis by Ortex Analytics.

  • A number of hedge funds have increased their short position since the company started insolvency proceedings
  • 10.2 million Wirecard shares are currently being shorted – down 41% over the last seven days but still representing 8.5% of total free float
  • Cost to borrow continues to skyrocket, up 140% in the past week

Peter Hillerberg, co-founder of Ortex Analytics, said in a statement: “Our data shows that short sellers are continuing to see an opportunity with Wirecard. Whilst some took profits after last week’s insolvency announcement, others have been building their position in recent days as the share price shows some upward movement. For anybody that thought the Wirecard saga was over, it’s clear that short sellers are not done yet.”

Data from Ortex Analytics show that Coltrane Asset Management, Greenvale Capital, Capital Fund Management and Ennismore Fund Management have increased or opened new short positions this week.

According to Reuters, Bank for International Settlements president Augustin Carstens said that more joined up rules may be needed across the payments sector after the collapse of Germany’s Wirecard, as the $2.1 billion hole in its books throws a spotlight on payments: “One of the key aspects will be how different and non-bank participants and payment service providers can be incorporated into the whole scheme,” Carstens told reporters. “As more details transpire I think that we will be able to pinpoint if or not further supervisory or regulatory action is needed.”

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