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Boohoo receives second US hedge fund investor in space of weeks

The recent flurry of investment in Boohoo comes with the shares having fallen 81% over the past 12 months

Boohoo Group PLC (AIM:BOO) shares were boosted after it emerged that a US-based hedge fund has acquired a 5% stake in the online retailer.

Shares rose 1% to 57.8p on Thursday after Ken Griffin’s Citadel become the online fashion retailer’s fifth-largest stakeholder.

Citadel, which was founded by Griffin more than three decades ago, is among the world’s largest hedge funds with over US$50bn of assets under management.

This is the second time in two weeks that the UK-listed retailer has received investment from US firms.

At the end of last month, Camelot Capital partners acquired a 4.59% stake, purchasing approximately 58mln shares in the region of £34mln, roughly like what Citadel would have paid.

The recent flurry of investment in Boohoo come as the retail sector has taken a hit as the cost-of-living crisis continues to mount, with Boohoo recently reporting lower sales, rivals such as ASOS issuing profit warnings.

Boohoo shares are down 81% over the past year.