Donald Trump’s fledgling media firm has urged market regulators to investigate “suspicious activity” after a London-based hedge fund disclosed a vast bet against its stock.
Trump Media & Technology Group, owner of the US president’s Truth Social platform, raised questions over trading by Qube Research & Technologies.
Earlier this week, Qube revealed a significant short position in Trump Media via filings with Germany’s federal Gazette Bundesanzeiger. It disclosed a position of almost 6m shares, according to Trump Media.
Short-selling is a way of betting against a public company. An investor borrows a stock, and then sells it on; should the stock fall, the investor then buys it back and pockets the difference.
In a memo to the US Securities and Exchange Commission (SEC), Trump Media – which trades under the ticker “DJT”, using Trump’s initials – said the total short interest in the company was 10.7m as of 31 March, according to Nasdaq, where its shares are listed, and had only risen to about 11m as of Wednesday.
These factors “especially when combined with the history of suspicious trading surrounding DJT stock … could be indications of the illegal naked short selling of DJT shares”, Trump Media claimed.
Qube did not immediately respond to a request for comment. The SEC did not immediately respond to a request for comment.
Shares in Trump Media rallied by about 7% in New York on Thursday. They have fallen by more than a third this year.
The firm is currently seeking to branch out beyond its core Truth Social platform, and this week announced investment accounts based on themes, including “Made in America” and “Energy Independence”, which align with the Trump administration’s agenda.
On its website, Qube says it combines “data, research, technology and trading expertise” to “solve the most complex challenges”.
The hedge fund was spun out of Credit Suisse in 2018, and is still led by Pierre-Yves Morlat and Laurent Laizet, former employees of the bank. It also has offices in Paris, Hong Kong, Singapore and Dubai.
In that time, Qube has grown quickly to rival some established giants of the industry, reportedly managing about $23bn of assets, which according to industry estimates would put it among the top 1% of hedge funds. It is also considered unusual for its lack of a New York office and collaborative corporate culture.
Alongside its short position in Trump Media, Qube has short positions in a range of UK-listed companies, including real estate firms, fashion retailer Boohoo and bowling centre operator Hollywood Bowl Group, according to the latest disclosures with the UK’s City regulator, the Financial Conduct Authority.
