White & Case partner and Head of UK Public M&A Patrick Sarch was recently featured in a range of financial outlets, including Hedge Week, The Financial Analyst, Portfolio Adviser, Securities Finance Times and Finimize. Patrick commented on new White & Case analysis highlighting a sharp resurgence in short-selling activity across UK-listed companies – as the Firm predicted last year. White & Case is advising a number of companies on how they might deter or counter short-selling pressure.
In Hedge Week, Patrick noted that the rebound follows a prolonged period of elevated valuations, with investors now scrutinising companies more closely: "As valuations come under pressure, investors are taking a closer look at companies whose fundamentals may not support their equity stories." He also highlighted the importance of preparedness, with issuers encouraged to strengthen transparency, governance and communication strategies to respond effectively to potential short-selling campaigns.
Patrick observed that the surge in short positions reflects a broader market correction after years of strong performance. He emphasised in Portfolio Adviser that "the opportunities for short sellers are more attractive now than they have been for many years," as macroeconomic uncertainty and a reallocation away from AI-driven stocks begin to weigh on valuations.
Elsewhere, Patrick remarked in The Financial Analyst, Securities Finance Times and Finimize that "only when the tide goes out do you discover who’s not wearing shorts – and indeed who is being shorted," underscoring how recent market conditions have exposed vulnerabilities in certain UK-listed companies whose fundamentals may not align with their valuations.
He also pointed to the constructive role short-selling can play in capital markets, noting that despite the recent uptick, it continues to support price discovery, transparency and governance, with investors often uncovering underlying issues that may otherwise go unnoticed. Finally, Patrick highlighted that while increased short activity can benefit overall market efficiency, imminent regulatory changes will make it more challenging for companies to identify and respond to investors building significant short positions.
Read the full Hedge Week article here.
Read the full The Financial Analyst article here.
Read the full Portfolio Adviser article here.
Read the Securities Finance Times article here.
Read the full Finimize article here.
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