Hedge funds take shorts worth 3.5 per cent of shares in Smurfit Kappa

Stock in Irish paper company Smurfit Kappa has fallen 14.3 per cent this year

Ken Bowles, Chief Financial Officer at Smurfit Kappa Group. Picture: Fergal Phillips

Hedge funds and private equity firms have shorted Smurfit Kappa in a sign that they are not convinced about its potential deal with WestRock.

Central Bank filings show four firms took out short positions between 21 September and 26 October, equal to 3.5 per cent worth of shares. The largest of which is Davidson Kempner European Partners, which has bet against 1.2 per cent worth of shares.

Magnetar Capital Partners and Pentwater Capital Management, two ...