The emerging media venture of Donald Trump has called on market regulators to investigate what it deems “suspicious activity” following the revelation of a substantial short bet against its stock by a London hedge fund.
Trump Media & Technology Group, the parent company of the former president’s Truth Social platform, has raised concerns regarding trading activities by Qube Research & Technologies.
Earlier this week, Qube made public a significant short position in Trump Media, as reported through filings with Germany’s federal Gazette, Bundesanzeiger. The hedge fund declared it held nearly 6 million shares in a short position, as per Trump Media’s statements.
Short-selling involves betting against a publicly traded company; an investor borrows shares, sells them, and if the stock price declines, they repurchase the shares at the lower price, profiting from the difference.
In a communication to the US Securities and Exchange Commission (SEC), Trump Media—which operates under the ticker symbol “DJT”, reflecting Trump’s initials—noted that the total short interest as of March 31 was 10.7 million shares according to Nasdaq, with a slight increase to approximately 11 million shares by Wednesday.
Trump Media asserted that these circumstances, particularly in conjunction with a history of dubious trading concerning DJT stock, could point to the unlawful practice of naked short selling of its shares.
Qube has yet to respond to a request for comment, and the SEC also has not provided immediate feedback.
Shares of Trump Media surged nearly 7% in New York on Thursday. However, they have seen a decline of over a third throughout the year.
The company is working to expand beyond its primary Truth Social platform and recently introduced themed investment accounts, such as “Made in America” and “Energy Independence,” aligning with initiatives from the Trump administration.
According to its website, Qube integrates “data, research, technology, and trading proficiency” to address complex challenges.
Qube was established in 2018 as a spin-out from Credit Suisse and continues to be managed by former bank employees Pierre-Yves Morlat and Laurent Laizet. It also maintains offices in Paris, Hong Kong, Singapore, and Dubai.
In a relatively short period, Qube has rapidly positioned itself to compete with some industry giants, reportedly managing around $23 billion in assets, which places it within the top 1% of hedge funds. Notably, it is also recognized for lacking a New York office and fostering a collaborative corporate culture.
In addition to its short stake in Trump Media, Qube has also opened short positions in various UK-listed companies, including real estate firms, fashion retailer Boohoo, and bowling center operator Hollywood Bowl Group, according to recent filings with the UK’s Financial Conduct Authority.
