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According to shorttracker.co.uk, there’s a big short interest in J Sainsbury (LSE:SBRY) right now. In other words, hedge funds think shares in the FTSE 100 retailer are set to fall.
Around 7% of the company’s outstanding shares are currently sold short and at least five firms are betting against the stock. So should investors be greedy, fearful, or neither?
Why Sainsbury’s?
It’s worth noting that, according to ShortTracker, there isn’t a substantial short interest in Tesco. So hedge funds aren’t betting against UK retailers across the board.
There are a couple of reasons Sainsbury’s might be a more attractive short opportunity. One of the most obvious is the firm’s operating margins have been consistently lower over the last few years.
Another is the fact Argos makes up around 15% of the overall company’s sales. That gives it more exposure to discretionary…
