Quindell short sellers hang on

Quindell – the insurance outsourcer that saw its shares tumble 40 per cent on Tuesday following a critical blog post by a group shorting the firm – started to recover yesterday despite short sellers holding onto large positions. “Short sellers have not yet closed positions, and are in fact still betting on the downside,” SunGard analyst Karl Loomes said, adding that borrowing of shares had increased five per cent. Shares rose 12.6 per cent yesterday to 26.75p.