Ocado Declines 13% After Chanos Reduces Short

Ocado Group PLC (LON:OCDO), a shortsellers’ favorite in the U.K., has been surrounded by a bunch of conflicting news. The online grocer, a short bet of notable investors like Jim Chanos and Tiger cub John Griffin, fell as much as 13 percent in the London Stock Exchange after bad news broke about a prospective deal with another retailer. The total short interest in Ocado is the highest at 14 percent of outstanding shares.

The recent decline is ironical as Jim Chanos recently reduced his short in the company from 5.21 to 3.28 percent on Friday. Other than today’s fall, Ocado has consistently risen and has...