Donald Trump’s media company has asked US regulators to investigate a London-based hedge fund after it disclosed a large bet against the firm’s stock. Trump Media & Technology Group, which owns the Truth Social platform, cited alleged ‘suspicious trading activity’ by Qube Research & Technologies.
Qube revealed a short position of almost 6 million shares in Trump Media via filings with Germany’s Federal Gazette Bundesanzeiger. Short-selling involves borrowing shares and selling them, aiming to buy them back cheaper later. Trump Media’s total short interest stood at 10.7 million shares as of 31 March, according to Nasdaq, rising to around 11 million by Wednesday.
In a memo to the US Securities and Exchange Commission (SEC), Trump Media said these factors, combined with a history of suspicious trading in its stock (ticker DJT), ‘could be indications of the illegal naked short selling of DJT shares’. Qube and the SEC did not immediately respond to requests for comment.
Shares in Trump Media rose about 7% in New York on Thursday, though they have fallen by more than a third this year. The firm is expanding beyond Truth Social, recently announcing investment accounts themed around ‘Made in America’ and ‘Energy Independence’.
Qube, spun out of Credit Suisse in 2018 and led by Pierre-Yves Morlat and Laurent Laizet, manages roughly $23 billion in assets. It also holds short positions in several UK-listed firms, including real estate companies, fashion retailer Boohoo, and Hollywood Bowl Group, according to FCA disclosures.
