Shares in British online retailer THG have lost 90 per cent of their value since going public in 2020, but shareholders shouldn’t blame chief executive and former billionaire Matthew Moulding. No, it’s all the fault of “hedge funds, media and bank analysts”.
At least, that’s according to Moulding, who has hit the headlines following a bizarre online rant in which he complained it was “standard practice for a select few” to “regularly build negative coverage against UK listed companies, including THG”.
The rules of the game are simple, said Moulding: bet a share price will fall and make sure you win the bet by “doing everything possible to discredit the company”. The UK market has suffered years of “over-fishing, where small groups of industry professionals come together to try and damage UK businesses”, he said. The “increasing flurry” of companies leaving the London market is “now bringing attention to the problem”.
Some companies, including Irish construction giant CRH, are indeed moving their main share listing from the UK to the US, but not for the reasons suggested by Moulding. In fact, data shows the number of highly-shorted companies in the UK is less than that seen in the US and Europe.
Data also shows short bets against THG didn’t swell until September 2022, following its third profits warning in a year (a fourth followed in January).
Making wild allegations and toe-curling videos (Moulding’s piece was accompanied by a video featuring clips from The Wolf of Wall Street and motivational quotes from Nelson Mandela) won’t alter THG’s profits outlook. Moulding should focus on the fundamentals – not his critics.
