Aston Martin driven lower as investors bet on stalling shares

A MAJOR investment firm has taken aim at James Bond’s favourite car firm Aston Martin in a sign it believes the share price will remain in reverse.

Carmignac, a French asset manager, has become the first investor to disclose a short position in Aston Martin, whose cars have been driven by 007 in 11 Bond films.

The firm has placed a £20million wager against the sports car company, according to data from the Financial Conduct Authority, which discloses substantial short positions.

It comes only a week after a share sale on the London Stock Market valued Aston Martin at £4.3billion, but shares are already down 19 per cent.

It is rare for investors to place bets against shares so soon after flotation and suggests Carmignac believes the price is still too high.

The Warwickshire-based luxury car firm was hoping it would fetch a £5billion valuation before eventually listing on October 3 at £19 per share, towards the bottom of its price range.

Since then, Aston Martin shares have continued to fall – not helped by the recent stock market rout – in what has been a turbulent start to its life on the market. The shares closed on Friday at £15.43, valuing the company at £3.4 billion.

Aston Martin chief executive Andy Palmer, who over four years has turned the previously lossmaking company into a profitable business, had ambitions of joining the FTSE100, but its slump means it could still be some way from entering the top flight of shares.

Short-sellers hope to profit from share price falls by borrowing shares for a fee, selling them, and then buying them back at a lower price.

Carmignac is a Parisbased asset management giant with nearly £50 billion under its control. It opened its London office in 2012. Last month, the company announced that founder Edouard Carmignac, a 71-year-old rock fan who entertained clients with private concerts from bands such as the Rolling Stones, was stepping back from the helm after three decades in charge. It did not comment on why it had taken a short position.