Hedge Fund D.E. Shaw Takes Major Short Position Against Bayer

By Nell Mackenzie and Ludwig Burger

LONDON/FRANKFURT (Reuters) – Hedge fund D.E. Shaw took a 1.02 billion euro ($1.08 billion) short bet against Bayer (OTC:BAYRY) on Tuesday, according to a regulatory filing in Germany. This move followed an earnings presentation that drove Bayer's shares to a 20-year low.

A short position indicates a belief that the price of the asset will decrease.

New York-based D.E. Shaw, one of the industry’s largest hedge fund managers with over $60 billion in assets, has not commented on the matter.

Bayer also did not provide an immediate response.

On Tuesday, Bayer cautioned that weak agricultural markets were expected to lead to further declines in next year’s earnings following the release of a lower-than-expected quarterly adjusted profit.

Chief Executive Bill Anderson's remarks led to a significant drop in the company’s shares, increasing pressure on him to implement successful turnaround strategies.

Bayer’s shares closed the session on Wednesday down 3.5%, marking a new 20-year low. On Tuesday, shares fell by as much as 15.8% from the previous day’s close.

($1 = 0.9444 euro)