Marshall Wace Bets Big Against BASF
July 05 2019 - 12:07PM
Dow Jones News
By Nathan Allen
U.K.-based hedge fund Marshall Wace LLP has taken out a short
position of 0.5% against German chemicals company BASF SE (BAS.XE),
according to a regulatory filing published Thursday.
The short position, which means Marshall Wace stands to benefit
if BASF shares fall, is valued at roughly 286 million euros ($322.7
million) based on BASF's current market capitalization.
Shorting BASF is the latest bet against a German industrial
company from Marshall Wace, which also holds short positions of
0.86% in Thyssenkrupp AG (TKA.XE), 0.69% in Wacker Chemie AG
(WCH.XE) and 0.68% in Daimler AG (DAI.XE)
Germany's industrial producers are highly dependent on exports
and have been roiled by this year's escalation in trade tensions
between the U.S. and China. President Trump's threats to slap
tariffs on the country's auto makers have elevated concerns about
profitability for an industry already under pressure from
increasingly stringent emissions regulations and changing consumer
trends.
A Marshall Wace spokesman declined to comment on individual
investments but said the company hasn't taken a position against
corporate Germany.
"The current book is balanced in Germany--net long positions and
net short positions balance each other," he said.
Because the threshold for reporting short positions in Germany
is lower than the threshold for reporting long positions, market
disclosures can appear skewed towards short positions.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
July 05, 2019 11:52 ET (15:52 GMT)
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