Hedge funds circle UK stocks as new PM Andy Burnham pledges 'new economic model'

Hedge funds have intensified their short-selling strategies against UK stocks, with disclosed positions surging fivefold in the first half of 2026. This surge follows the appointment of Andy Burnham as the UK’s new Prime Minister, who has committed to addressing the country's affordability crisis through a 'cost-of-living government.' His agenda includes a 10-year plan for reindustrialization, emphasizing housing and utility affordability. Investors anticipate that this policy shift will create both long and short opportunities across various sectors, particularly in utilities and housing.