AB Foods and ASOS are the most shorted stocks in retail, finds UBS
UBS’s latest “crowding” analysis says European retail investor positioning remains negative overall and the sector is “short skewed” versus the wider market. In UBS coverage, Next, Tesco and Inditex are among the most crowded long positions, while Associated British Foods and ASOS are among the most crowded short positions. UBS adds the data can signal earnings-related selling risk or short-squeeze potential.
How this was made
The 30-second read
Why it matters
For ABF and ASOS, being among the most crowded shorts suggests asymmetric risk: selling pressure if results disappoint and potential short-squeeze rallies if performance exceeds expectations.
Market read
A positioning-based risk update for two UK retail names, useful for anticipating volatility around forthcoming company updates.
What to watch
Crowding data alone doesn’t indicate timing of catalysts; liquidity/float and upcoming specific event dates determine whether squeezes materialize.
Background
UBS’s “crowding” analysis tracks where institutional investors are concentrated; it highlights retail as “short skewed” versus the wider European market.
Ticker impact
UBS says ASOS remains among the most crowded short positions in retail, indicating investors are positioned defensively against the shares.
Higher probability of short-squeeze-driven rallies and sell-pressure on disappointments.
The news is a risk/positioning update (crowding) rather than a new operational or financial event for ASOS.
Market effects
Signals broader European retail positioning is short-skewed, suggesting sector-wide earnings sensitivity and higher dispersion.
Primarily affects European retail names covered by UBS; could spill into UK retail peers via sentiment/read-across.
Limited direct global impact, but crowded-short dynamics can influence cross-border risk appetite for retail exposure.
Counterpoint
Crowded shorts can unwind even without fundamental improvement if macro/sector sentiment improves, so the bearish positioning may already be “priced in.”
Key entities
- institutionUBS
Provides the institutional crowding/positioning analysis referenced in the article.
- companyAssociated British Foods PLC
Identified by UBS as one of the most crowded short positions in retail.
- companyASOS PLC
Identified by UBS as one of the most crowded short positions in retail.
