Lower Millennium International Management decided to reopen short position open griffles equivalent to 0.53% Shares of his capital fell after several days when the value was affected by the volatility caused by the report of the Gotham City Survey, which again showed a downward trend.
Millennium opened its position in Grifols on Tuesday, January 16, according to National Securities Market Commission (CNMV) records. At that day’s closing price almost 2.26 million shares The value of those who created the short position will be 20.3 million euros.
This calculation performed by Europa Press is theoretical because it is not possible to know the average price at which the fund creates its position. Then, the possible profit of this operation will also be affected by the average purchase price of the shares (in short positions you first sell and then buy), the possible cost of leverage and the price offered to owners who borrow them. shares.
Millennium operated with Grifols for most of 2023. short operations. Last week, Gotham decided to fully liquidate its short position in Grifols, making a potential profit of up to €18 million.
Although it is not possible to know the origin of the shares that Millenium borrowed for this operation, it was known last week that Grifols’ fifth largest shareholder, Capital Group, made this decision. lending nearly two million shares of its participationIt is equivalent to 0.469% of the capital.
The fund did not specify to whom or for what purpose it lent these shares. The operation of a bearish investor trading short positions means that he or she has to borrow shares from a third party, sell them in the markets, and then buy them back and return them to their original owners. Profit is realized when the price of a security falls.