There are 20 UK-listed companies with net short positions of more than 5% as of 23 March, up from just two in 2025, according to recent analysis by law firm White & Case LLP.
Three of these companies have net short positions of more than 10%: Airline company Wizz Air Holdings, bakery chain Greggs and building materials business Ibstock.
In general, the consumer sector was the most shorted, with names such as Whitbread, Domino’s, Sainsbury, and WH Smith all having net short positions of over 5%, according to the research.
Patrick Sarch, head of UK public M&A at White & Case LLP, said: “The opportunities for short sellers are more attractive now than they have been for many years.”
Global stockmarkets have experienced a decade-plus bull market, with even UK stocks at record highs until the recent geopolitical conflict in the Middle East, he continued.
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“However, markets are beginning to come off these highs following the recent reallocation out of AI-driven stocks and heightened macro uncertainty,” he said.
“As individual valuations come under pressure, investors are increasingly taking a closer look at those UK-listed companies whose equity stories appear too good to be true and whose fundamentals don’t support their valuations.”
To avoid becoming the target of shorting, White and Case called for companies to be more proactive and transparent by internally engaging on vulnerabilities that may attract short sellers.
For example, they should consistently and proactively explain their value proposition and support it with objective evidence, the report argued.
White and Case added that this surge in short-selling comes as the FCA is finalising rule changes to remove the requirement for short-sellers to disclose their identities.
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“That may well be good for the market as a whole, but may make it hard for specific companies to respond and easier for short sellers to make a negative impact on their share price,” White and Case said.
