The quant driven hedge fund, AQR Capital is now betting on the fall in the German stocks.
The bet is worth €1.3 billion which is equivalent to $1.5 billion. By doing this AQR Capital will be joining the other short sellers in the swirling of the index for gaining returns after a dismissal year for the equity of the country.
According to the Breakout Point which is a data firm, under its management AQR has assets of about $226 billion have opened a Deutsche Bank short bet of 0.5 percent last week which is worth €435 million.
These positions are in addition to the bearish bets of the funds on Bayer which is a pharmaceutical company, Infineon which is a semiconductor firm, Continental which is an automobile manufacturer along with ThyssenKrupp which is the industrial giant.
The DAX Index for the year has been under-performing its European benchmark. It is down by about 17 percent versus 13 percent decline in the Euro Stoxx 50.
There have been a host of factors that have been hurting the companies of Germany lately.
One of these is the trade war between the United States and China which has been hammering the automobile makers of Germany. This war has affected the clobbered the Deutsche bank as well which was clobbered with the news.
To add to the trouble, the uncertainty regarding the future of the government of Germany is also evoking. Germany which is often referred to as the powerhouse of Europe is facing a difficult situation and things are not looking good for it.
The Breakout Point stated that they have not witnessed big stories of DAX by the hedge fund.
Source: Business Insider, News Posts
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