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Repsol says goodbye to four years of bearish truce with the emergence of ExodusPoint

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Repsol becomes the last hold of the bassists on the Ibex 35. After more than four years free of relevant short positions, the hedge fund ExodusPoint has announced the take of 0.5% of the social capital of the energy company. The minimum percentage for your speculative investment to be considered relevant.

The package declared by ExodusPoint is equivalent to an investment close to 70 million euros, based on Repsol’s current capitalization. Its arrival, notified to the National Securities Market Commission (CNMV) on Monday, July 19, marks the premiere of the US fund in taking short positions in the Spanish energy company.

This last point is not excessively relevant, since the history of the hedge fund only dates back to 2018, the year in which it was founded. ExodusPoint Capital is run by Michael Geldband, a manager who has spent a good part of his professional career at Millennium Capital, a very common firm among bears on Spanish listed companies.

Steadfast Relay

What is more relevant is that Repsol had not received any bearish attack of such magnitude since March 2017. So, the managers of Steadfast Capital they lowered their bet against the Spanish oil company below the referred threshold of 0.5%. Before, in January of that same year, they managed to agglutinate 0.62% of their capital from the Spanish company, bet against its stock market performance.

In this sense, the emergence of ExodusPoint occurs in the midst of a new corrective episode for Repsol’s actions. Only in the last month have lost 15% of their value. Fears of a weaker-than-expected economic comeback as a result of the proliferation of infections by the Delta variant of the coronavirus have hit its valuation on the stock market.

Oil retreat

Faced with these fears, investors discount that global oil consumption will not rebound with anticipated momentum, which has taken its toll on the price of the main raw material of the Spanish company: a barrel of Brent crude has lost more than 7% since the beginning of July. And it should be remembered that last year the Texas benchmark barrel in the US came to trade at negative prices in the futures market.

This same Wednesday in which its entry was made public, ExodusPoint announced that his position diminished slightly up to the 0.49% threshold. A tiny step back but enough to once again free Repsol from bearish positions. However, the narrowness of the movement and amplitude of the last movements in the stock market The oil company makes consulted analysts think that the fund will continue to play its speculative strategy in the company for a time, without completely abandoning its position.

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