Boohoo in fashion again after fund builds stake | Business

Citadel, the giant American hedge fund founded by the billionaire Ken Griffin, has emerged as a leading investor in Boohoo.

The online fast-fashion retailer disclosed yesterday that Citadel had built a stake of just over 5 per cent, mainly through the use of derivatives.

Citadels move follows a slump in Boohoos share price, which has tumbled by 82 per cent in the past 12 months after it sounded a series of profit and sales warnings.

The news of Citadels stake-building pushed shares in Boohoo up 2p, or 3.7 per cent, to 57p as other investors interpreted it as a sign of confidence. This is despite records at the Financial Conduct Authority showing that a different entity at Griffins firm has also been shorting Boohoo stock.