Consumer discretionary was the most shorted sector in Europe as at 1 May, according to analysis from Graniteshares.
Almost a quarter of the 100 most shorted stocks on major European exchanges were in the sector at the start of May, including Scandic Hotels Group, which had 14.4% of its stock held short.
Industrials held the second-greatest short exposure in Europe, with 18 net short positions in the sector. Irish paper-based packaging company, Smurfit Kappa, saw the highest level of short interest in the sector at 14.9%, rising from 2.54% a year ago.
Will Rhind, founder and CEO of Graniteshares, said: “European listed companies are facing numerous challenges associated with the current geopolitical and macroeconomic environment. This creates more interest for shorting, both for tactical investing and for portfolio’s hedging.
“While bearish sentiment ran highest among investors in consumer discretionary stocks, our research found that institutional investors are betting against a wide range of sectors.”
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The energy sector had the third highest representation, with short sellers targeting eight alternative energy stocks, as well as eight oil, gas and coal companies.
However, the most shorted individual company was French tech firm Atos SE. The company had 16.8% of its stock held short at the start of May.
By region, the UK held 22 of the 100 most shorted companies, ahead of Germany on 21. Petrofac was the most shorted UK company, with a short position of 10.1%.
