Short sellers Down $5.5Bn On US Positions In November

The latest analysis from Ortex Analytics which finds that short sellers have lost $5.5bn on US positions in November so far.

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Q3 2020 hedge fund letters, conferences and more

  • Biden victory and prospect of a Covid-19 vaccine sent global stock markets soaring on 9th November
  • Analysis by Ortex Analytics suggests many short sellers were caught out by the rapid change in investor sentiment; cumulatively US short positions have lost $5.5bn since 1st Nov 2020
  • Travel and tourism companies lead losses, but technology positions return profit as market reflects growing confidence about an end to the pandemic

US Short Positions Have So Far Lost $5.5bn

London, 11th November 2020 - US short positions have so far lost $5.5bn in November as global stock markets respond to the US election result and the prospect of a Covid-19 vaccine, according to the latest data from Ortex Analytics.

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business manPrentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More

Analysis found that travel and tourism stocks led losses for short sellers as investors became increasingly confident that an end to the pandemic may be in sight.

Top 10 largest losses for short sellers (Nov 1st – Nov 9th)

Company Short Profit
Carnival Corporation & Plc -$520,645,038
Expedia Group, Inc. -$382,521,909
Booking Holdings Inc. -$345,380,994
Royal Caribbean Group -$320,378,441
Visa Inc. -$316,980,481
American Airlines Group Inc. -$274,828,946
Wynn Resorts, Limited -$253,785,998
Norwegian Cruise Line Holdings Ltd. -$251,891,345
The Boeing Company -$242,611,684
The Walt Disney Company -$236,193,825

However, stock that have performed well so far during lockdown offers some respite for short sellers as their values dropped:

Top 10 largest profits for short sellers (Nov 1st – Nov 9th)

Company Short Profit
Zoom Video Communications, Inc. $999,668,166
Wayfair Inc. $936,782,953
Tesla, Inc. $460,179,958
Teladoc Health, Inc. $457,657,390
Sea Limited $449,411,262
Alibaba Group Holding Limited $448,493,764, Inc. $420,741,075
Netflix, Inc. $416,490,778
Peloton Interactive, Inc. $375,821,804
Square, Inc. $364,371,882

Investor Confidence Rises On The News Of A Biden Victory

Commenting on the data, Peter Hillerberg, co-founder of Ortex Analytics, said: “Investor confidence improved dramatically following news of a Biden victory and the prospect of a Covid-19 vaccine. This rapid swing in sentiment has caught many short sellers off guard, leading to significant losses so far in November. However, these losses would have been far worse had it not been for pockets of profit, for example among tech stocks.

“What will be interesting is to see what happens next. Do short sellers hold tight and hope the market rights itself following he exuberance of the past few days, or do we see a fundamental reassessment of short and medium term outlooks and a change in positioning as a result. In any case, short sellers have an uphill battle to recoup this month’s losses.”