London’s house builders and consumer groups targeted by short sellers

House builders and consumer groups are coming under pressure from short sellers as investors bet on a downturn across both sectors in the coming months. The number of companies with over five per cent of their shares held short more than doubled from 27 to 60 in the three months to October, according to the latest analysis from law firm White Case, while companies facing short positions of larger than 10 per cent rose to 14 from two. Short positions are financial bets made by investors, often hedge funds, who predict that a company’s stock will decline. Investors borrow shares at their current price before selling with the aim of buying them back at a lower price in order to make a profit. House builders, building materials manufacturers, and retail and consumer groups have borne the brunt of the pressure from investors. Builders accounted for five of the 14 companies with the highest disclosed short positions, led by Vistry, where investors currently hold short interest of