OUCH! #Germany's Dax closed at fresh ATH just as hedge fund Qube built a $1bn short bet against top German stocks. Volkswagen, Deutsche Bank, Rheinmetall, Siemens Energy, Hellofresh, and Morphosys are among those being wagered against. https://t.co/RUI9bB0k4k pic.twitter.com/Mk33v4zboX— Holger Zschaepitz (@Schuldensuehner) January 24, 2024
Qube Research & Technologies (Qube) has built a short position against German companies of more than $1bn as Europe’s biggest economy slows in response to a downturn in global demand, according to a report by Bloomberg.
The report cites data from regulatory filings compiled by Bloomberg as revealing that over the past two weeks, the London-based global quantitative investment manager added to bets against the likes of carmaker Volkswagen, as well as disclosing a $131.8m short against Deutsche Bank.
According to the data, Qube, which was spun out from Credit Suisse in 2018 and managed around $11bn last year, is now the biggest disclosed short seller of German stocks.
The wagers come even as the benchmark DAX stock index remains near its record high as equities rally on expectations that central banks will cut interest rates aggressively this year.