// Hedge funds have upped their bets against Boohoo and Asos in the wake of the CMA’s greenwashing investigation
// The share price of the online retailers has plummeted three quarters over the past year
Leading head funds are betting on the demise of online giants Asos and Boohoo in the wake of greenwashing investigation by the Competition and Markets Authority.
The CMA revealed late last month that the pair, along with Asda, would be investigated to see whether their sustainability claims are misleading to consumers.
Since the announcement, short sellers have betted that Boohoo and Asos’ share price will plummet further, despite their stocks plunging by around three-quarters over the past year.
Marble Bar Asset Management upped the ante against Asos last week by 0.12 % each, while GLG raised its bet by 0.03%, according to This is Money. Nearly 6% of Asos shares are now shorted.
READ MORE: Tesco and Ocado among businesses falling short on green promises
Boohoo has around 7.27% of its shares out on loan with CapeView Capital and AHL Partners both raising their bets against Boohoo on August 1 by 0.16% and 0.04% respectively.
If the CMA find the pair guilty of greenwashing they will face a fine as well as damage to their reputation. The decision is likely to put off some investors with an increasing number of firm’s using sustainability as a factor in investment decisions.
Boohoo’s second largest shareholder, T. Rowe Price, halved its holding in the fast fashion etailer from 9.7% to just under 5% earlier this month.
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