Six traditional fund managers have missed out on paper profits worth a total of almost £300m (€440m) after shares in J Sainsbury fell as a result of buyout firm CVC's decision to pull out of a bid for the UK-listed retailer.

It illustrates the risk taken by shareholders who bet on a bid going through and either hold their positions, as with these six managers, or buy positions following the announcement of an offer, as with merger arbitrage hedge fund managers. Significantly, only one hedge fund and one bank prop trading desk has announced holding a position in Sainsbury.