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Jan 10, 2022
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THG claims hedge funds mounted co-ordinated attack on its shares

Jan 10, 2022

High-profile e-tailer and tech solutions provider THG (formally The Hut Group) claims it has been the subject of a coordinated attack by hedge funds that led to a sharp fall in its share price in recent months.

The Hut Group

The company, which operates over 100 international websites, said it has handed data to the Financial Conduct Authority (FCA) to support its claim.

Various press reports claimed the documents contain what THG believes to be irregular stock market trading and short-selling data, particularly after a damaging response to its capital markets day in October that wiped £2 billion off its market value.

At the time, THG held a meeting with investors to offer more clarity about its white-label technology division, Ingenuity, amid concerns about its profitability and business model. But the shares fell sharply afterwards, with the former stock market darling’s share price down over 77% in just a year.

But even after the news of what it thinks is an attack on its shares, THG stock continued to fall on Monday, dropping almost 8%.

A source close to THG claimed the particular fall it looked at was due to co-ordinated ‘sell’ orders designed to trigger automated trading algorithms.

THG’s submission comes in response to a request from the FCA, sources said, after Numis, which worked on THG’s £5.4 billion listing, reported itself to the financial regulator in November.

Last month, speculation resurfaced that THG could be taken private again by its founder with the firm’s then battered share price rising as investors bet on hopes of a privately-backed buyout. 

THG, the FCA and Numis have all declined to comment.

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