Hedge fund Odey Asset Management has taken aim at UK cardboard giant DS Smith with a £30 million short bet amid fears of a packaging industry slowdown.
The FTSE 100 supplier, which churns out 16 billion boxes per year and makes Amazon packaging, has grown rapidly in recent years thanks to the e-commerce boom.
However, its shares have fallen 25% over the past three weeks due to price fears and the market rout.
At the same time, the number of DS Smith shares on loan to hedge funds has doubled to 1.18% since the start of the month, according to IHS Markit obtained by the Standard.
Markets are nervous about falling prices for materials used in corrugated cardboard and a US production glut, which could weaken sales.
Rival packaging makers like Smurfit Kappa and Mondi have also been hit by these fears.
The Odey short, thought to be masterminded by fund star James Hanbury rather than Crispin Odey, the billionaire veteran founder, is worth 0.54% of DS Smith shares.
Computer-driven hedge fund AHL also has a short position.
Short bets on DS Smith can be considered contrarian as two thirds of City analysts who cover the stock tell their clients to buy the shares.
