Hedge Fund of America stung by Ocado growth
Online grocer named Ocado grew recently which has stung one of the US hedge funds, which has reportedly lost up to forty million pounds by shorting Ocado stock after the firm’s rocky flotation in July.
Elinor Carter Brooks from Blue Ridge Capital which is located in New York is believed to have bet against the shares when they had already declined to near all-time lows of one hundred and thirty pence in the month of October.
Its shares closed at 259.3p on Friday, giving the firm a value of £1.4bn.
Shares of Ocado were shorted aggressively following its lower-than expected float last July, with around four and a half per cent of the shares at one point available for borrowing.
Ocado did not comment, while Blue Ridge could not be contacted yesterday.
It was not all hunky dory for Ocado yesterday, with partner Waitrose announcing a ten million pound website refurbish for its home delivery service.
Waitrose is the supplier of the most of Ocado’s products and said that it expects to start its own web store in the second week of March.
Waitrose stated that its service will focus on personal advantages like allowing customers select the ripeness of fruit.
The supermarket which is owned by employees plans to expand inside the M25 for the first time after it signed one supply agreement with Ocado that restricted such a move until last year.
Ocado insiders yesterday dismissed the idea of any rivalry between the online services. Ocado couldn’t be growing much faster right now, and there is room in this market for everybody, as one of the sources was found saying.