Every so often we like to check in with the FCA on the latest short-selling positions in UK stocks. For background, hedge funds will sell short a company’s shares because they believe the stock is overvalued and they expect the price to go down.
This information can be useful for investors when it come to analysing companies. Typically, shorting involves a great deal of research and a high level of conviction because it’s a high-risk strategy.
Technically, the reward for short selling is limited, because stock prices can only go to zero, they can’t go negative. In contrast, the risk is unlimited, because in theory prices can go to infinity.
It’s for this reason only professional investors should contemplate shorting stocks, indices or other instruments. Even when we come across companies we think are overvalued in our research, we don’t suggest shorting.
The most-shorted UK stock is…
As of the end of October, the most-shorted UK stock by percentage of shares outstanding was clean energy technology firm Ceres Power (LON:CWR). According to FCA data, hedge funds have shorted 36.64 million shares or 18.6% of the firm’s capital.
Ceres’ technology goes into fuel cells for power generation and electrolysers for green hydrogen. Using an asset-light licensing model, the company has signed deals with some of the largest energy firms including Centrica (LON:CNA) and Shell (LON:SHELL).
Electricity demand is growing faster than existing capacity can supply, increasing pressure on generation assets and the grid. Lack of transmission capacity meant the UK spent over £1 billion on balancing the electricity network during September and October 2026.
This demonstrates the need for efficient, reliable power sources which can be deployed quickly to meet demand. Meanwhile, customers facing power shortages are increasingly looking beyond traditional solutions, particularly where availability and deployment timelines present a challenge. Ceres’ technology will be able to be deployed in months rather than years, providing a practical route to secure power while supporting the transition to lower-carbon energy systems.
We can only assume from the size of the short selling the hedge fund community doesn’t believe the company’s demand forecasts. With average daily volume of two million shares, it would take more than 18 trading days to close all the shorts.
Intriguingly, the second most-shorted stock is another Alternative Energy play, Jersey-based uranium invetor Yellow Cake (LON:YCA). The company owns physical uranium, which it stores in France and Canada, for use in nuclear power plants.
Top 10 UK shorts by percentage of capital shorted
| Stock | % of shares short | Current value (£m) | Perf ytd (%) |
| Ceres Power | 18.6 | 104 | +27.4 |
| Yellow Cake | 16.4 | 218 | -9.7 |
| Ibstock | 13.9 | 44.3 | -49.1 |
| Genuit | 13.3 | 88.2 | -17.7 |
| Vistry | 12.9 | 107 | -56.3 |
| WH Smith | 12.5 | 80.4 | -32.1 |
| Breedon | 12.4 | 143 | +2.1 |
| Crest Nicholson | 12.2 | 19.9 | -54.5 |
| Rightmove | 11.0 | 414 | +1.1 |
| Chemring | 10.9 | 168 | +20.3 |
Source: FCA, Sharesify. Data correct as of 2 November, 2026
Builders and Building Materials in the firing line
While Alternative Ennergy may top the table, by far the most consensus UK shorts are Builders and Building Materials. The two sectors account for five of the top 10 shorts and eight of the top 20 (the missing names are Barratt Redrow (LON:BTRW), Persimmon (LON:PSN) and Taylor Wimpey (LON:TW.)).
This is no great surprise, given the repeated disappointments and profit warnings the sector has served up. Tellingly, even when there is good news and shares rally, the hedges typically sell more stock and the gains evaporate.
The ‘Your First Homes’ scheme is a case in point, as several housebuilders and materials stocks jumped on the announcement. A month later, however, and the shares are mostly back where they were if not lower still. As a result, hedge funds have generally done well out of shorting Builders and Materials.
Questions over the consumer, too
Another area of the UK market which hedge funds seem happy to short in numbers is Consumer Discretionary stocks. However, unlike Builders and Materials, shorting Consumer stocks has been pretty unsuccessful with several companies posting double-digit gains.
Some of the more surprising moves this year, given the news flow, are Ocado (LON:OCDO) up 38% and B&M European Value Retail (LON:BME) up 67%. Ocado has struggled to sell its software and CFCs (customer fulfilment centres) to overseas retailers this year, yet analysts seem to love it. Similarly, B&M has suffered from weak sales for most of 2026 yet analysts continue raising their target prices.
We have taken the other side of the short trade in the case of Domino’s Pizza (LON:DOM) and Greggs (LON:GRG). Both stocks feature in our ‘Six of the best non-tech growth stocks’ article and both are performing nicely for us.
Shorts in UK consumer discretionary stocks
| Stock | % of shares short | Current value (£m) | Perf ytd (%) |
| WH Smith | 12.5 | 80.4 | -32.1 |
| Kingfisher | 10.5 | 608 | +16.7 |
| Ocado | 10.2 | 275 | +38.0 |
| Wizz Air | 9.8 | 99.1 | -19.5 |
| Domino’s Pizza | 9.0 | 77.9 | +33.9 |
| Sainsbury’s | 7.0 | 526 | +8.4 |
| B&M European Value Retail | 6.9 | 191 | +67.0 |
| Whitbread | 6.2% | 284 | +10.0 |
| Moonpig | 6.1% | 50.3 | +40.7 |
| Greggs | 5.9% | 139 | +41.5 |
Source: FCA, Sharesify. Data correct as of 2 November 2026.
Which are the least-shorted UK stocks?
At the opposite end of the scale, we have looked at the stocks where short sellers represent the lowest percentage of the share capital. On the face of it there doesn’t seem to be much rhyme or reason to the names but we suspect there is a degree of ‘pairs trading’ going on.
This is where hedge funds short one stock against another in the same sector, with a view to making money on the gap between them. Today, these trades tend to be fairly sophisticated, with longs and shorts matched across factors such as volatility and liquidity.
Hence, traders will pair shorts in Sainsbury’s with longs in Tesco (LON:TSCO) and shorts in Kingfisher with longs in AO World (LON:AO.). Similarly, Henry Boot (LON:BOOT) seems to the long of choice against shorts in housebuilders while Volution (LON:FAN) is the long against shorts in building materials.
The full list of shorts is available to download from the FCA website, but we will be keeping regular tabs on them and reporting back on significant changes.
Top 10 least-shorted UK stocks by percentage of capital shorted
| Stock | % of shares short | Perf ytd (%) |
| BAE Systems | 0.2 | +20.1 |
| Plus500 | 0.2 | -10.3 |
| Tesco | 0.2 | +23.9 |
| AO World | 0.2 | -18.7 |
| Henry Boot | 0.2 | -34.4 |
| Gulf Marine Services | 0.2 | -9.0 |
| 4imprint | 0.2 | +19.1 |
| Volution | 0.2 | +1.4 |
| Fresnillo | 0.2 | -29.9 |
| Funding Circle | 0.2 | +64.7 |
Source: FCA, Sharesify. Data correct as of 2 November 2026.
