£100m hit for hedge fund sharks

VULTURE investors betting on the collapse of Ocado have been stung for more than £100m as its share price surged 44pc yesterday.

Hedge funds short-selling shares in the British firm – gambling that their value would plummet when it failed to deliver much-trumpeted international expansion plans – suffered as the stock price hit an all-time high when Ocado revealed the partnership with grocery chain Kroger.

Speculators which have suffered include the US goliath Blackrock and Chelsea-based Marshall Wace.

Their bets have for years made Ocado one of Britain’s most heavily shorted stocks.

Hargreaves Lansdown analyst Laith Khalaf said: ‘As one of the most shorted stocks in the UK stock market, this deal will be a poke in the eye for the hedge funds who have bet against Ocado because of its eye-watering valuation.

‘The short-sellers were hoping Ocado wouldn’t deliver on its international expansion plans – that position now looks like a badly busted flush.’