Hedge Funds Identified WH Smith as a Leading Short Position Prior to Share Decline, According to Hazeltree Data

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Aug 21 2025

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Source: Reuters

WH Smith's Short Selling Target: Hedge funds and speculators identified WH Smith as a prime target for short selling in July, leading to a significant drop in its stock price following an accounting error announcement.
Accounting Error Impact: The British travel retailer revealed an overstatement of approximately £30 million in expected profits due to premature booking of supplier income, resulting in a lowered annual profit outlook.
Analysts' Reactions: Following the news, analysts reduced their target prices for WH Smith's stock, citing increasing debt and economic uncertainties affecting the travel sector.
Market Trends: Other sectors, including entertainment ticket sales and luxury drinks, also experienced significant short selling activity, as reported by Hazeltree's Shortside Crowdedness Report.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.