It is never a good sign when a sleuth of angry bears bets against a stock. Distressed debt collector Arrow Global has several hedge fund grizzlies shorting its shares, including Lansdowne Partners and Marshall Wace. A total of 8% of its shares are out on loan, according to Markit, making it one of the London market’s most shorted stocks.
Among the weaknesses targeted by the bears is Arrow’s debt pile, with net debt levels 3.6 times adjusted earnings. Chief executive Lee Rochford has bowed to this pressure, committing to cut Arrow’s gearing by the end of the year to 3.5 times.
The debt collector faces other challenges, including high costs and its attempt to broaden its business model. Early last month, Arrow said it plans