The departure of BP chief executive Bernard Looney has been a tailwind for sophisticated investors shorting the oil giant, according to returns data from GraniteShares
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Will Rhind, Founder and CEO at GraniteShares
Investors using its 3 x Short BP ETP (3SBP) gained 8.42% overnight on September 13th making it the fourth best daily performer among GraniteShares’ range of ETPs, behind 3x Short Netflix, 3 x Short NIO and 3x Long Moderna. They gained 15.54%, 14.23% and 9.50% respectively.
The BP chief executive resigned after it emerged he had misled the company’s board about past relationships during an investigation last year. Around £2 billion was wiped off the oil giant’s market capitalisation as a result and BP’s share price fall dragged the FTSE-100 lower.
Shares in BP are now recovering and data from GraniteShares shows investors expect ongoing growth in the shares. Around 88% of money invested in its BP ETPs is in its 3x Long BP ETP (3LBP)
Investors in the 3x Long BP ETP have seen returns of 11.33% in the past month and 26.21% over three months while those 3x Short BP ETP have had returns of -12.96% over a month and -28.24% over three months.
Will Rhind, Founder and CEO of GraniteShares, said: “The departure of BP’s chief executive was a major shock and immediately hit the share price as the market reacted. That presents opportunities for sophisticated investors who realised the potential for strong returns by going short on the shares. In general, we have seen most investors expecting growth in the shares.”
Source: ETFWorld.co.uk
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