Growing Concerns? Citadel Advisors Significantly Increases Short Bets Against Puma

In a move that has caught the attention of market analysts, Citadel Advisors LLC, a prominent hedge fund, has substantially increased its short position in Puma SE (ISIN: DE0006969603, WKN: 696960, ticker symbol: PUM, NASDAQ OTC symbol: PMMAF). The firm, founded by Kenneth C. Griffin and based in Chicago, Illinois, USA, disclosed on April 4, 2025, that it had nearly doubled its net short position, raising it from 0.48% to 0.78% of Puma’s outstanding shares.

This increase surpasses the disclosure threshold, signaling a perhaps bearish outlook on the sports and lifestyle brand’s future performance. Short selling involves borrowing shares and instantly selling them, with the expectation of buying them back at a lower price in the future, thus profiting from the price decline. A significant increase in short positions can indicate a lack of confidence in a company’s prospects.

Hedge Fund Sentiment Turns Negative on Puma

Citadel Advisors is not alone in its pessimistic view. Several other major hedge funds have also established notable short positions in Puma SE. As of April 4, 2025, the following firms hold significant net short positions:

• Millennium International Management LP: 1.08%
• Citadel Advisors LLC: 0.78%
• D.E. Shaw & Co. L.P.: 0.70% (as of March 13, 2025)
• Millennium Capital Partners LLP: 0.60% (as of April 3, 2025)

Collectively, these major hedge funds hold short positions totaling at least 3.16% of Puma SE’s shares. It’s important to note that positions below 0.50% are typically not subject to public disclosure and are therefore not included in this calculation.

Potential Implications for Puma SE

The increased short selling activity raises questions about the factors driving this negative sentiment towards Puma. Several potential reasons could be at play. For example, concerns about slowing growth in the sportswear market, increased competition from rivals like Nike and Adidas, or potential supply chain disruptions could be contributing to the bearish outlook.

According to recent industry reports, the global sportswear market is projected to grow at a compound annual growth rate (CAGR) of around 5% over the next five years. while still positive, this represents a slowdown compared to the double-digit growth experienced in previous years. This deceleration, coupled with inflationary pressures impacting consumer spending, could be weighing on investor sentiment towards Puma and its peers.

Moreover, a high level of short interest can sometimes create a self-fulfilling prophecy, as increased selling pressure can drive down the stock price, further validating the short sellers’ initial thesis. however, it’s also important to remember that short sellers can be wrong, and a positive catalyst for Puma, such as a strong earnings report or a successful product launch, could trigger a short squeeze, sending the stock price higher.