The Most Shorted Stocks on the FTSE

Market conditions have stabilised this year but Wirecard's implosion shows that short-selling is still a viable and profitable strategy 

James Gard 28 July, 2020 | 11:53AM

Storm cloud

The spectacular demise of German tech company Wirecard (WDI) has made staggering sums of money for short sellers, underlying how lucrative the investment strategy of betting against a company can be.

Wirecard has now filed for insolvency and key executives have been arrested as regulators probe the possibility of large-scale fraud. But Wirecard has been on the radar of short-sellers, who have long suspected financial malpractice at the company, for years now. Indeed, Germany’s financial regulator BaFin banned shortselling in Wirecard for two months in 2019 to stabilise the firm’s share price, which at the time was around €150.

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About Author

James Gard  is content editor for Morningstar.co.uk

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