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Bodenholm and Westray reveal media stock shorts on changing viewers

Bodenholm and Westray reveal media stock shorts on changing viewers
From Reuters - November 30, 2017

LONDON (Reuters) - European hedge funds Bodenholm Capital and Westray Capital Management revealed they had taken short selling positions on some media companies, bets that their stock prices will fall, on the back of changing consumer habits.

Online services like Netflix and Amazon will continue to eat away at the business of traditional media companies, fund managers for both firms said at the Sohn Conference in London on Thursday.

Per Johansson of Bodenholm, which has assets under management of around $700 million, said that the fund has take a short position in the shares of German media company Prosiebensat 1.

He said viewers from younger age groups were turning away from traditional television to online and on-demand formats.

We now spend our time in front of the TV in different ways, Johansson said. Bodenholm declined to comment on the size of the short position in Prosiebensat.

A spokesman for Prosiebensat said it had a proven growth strategy that is driving diversification and digital transformation, and would be updating investors at a capital markets day next week.

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