Automakers Continue to be Among Most Shorted Securities in Americas in July, According to Hazeltree’s Shortside Crowdedness Report
Sourced from Hazeltree’s proprietary securities finance platform data, which tracks approximately 12,000 global equities, the monthly snapshot examines shorting activity across the Americas, EMEA, and APAC
NEW YORK, LONDON and HONG KONG, August 10, 2023 – Hazeltree, a leader in active treasury and intelligent operations technology for the alternative asset industry, today published its Shortside Crowdedness Report for July. The report is a monthly listing of the top 10 shorted securities in the Americas, EMEA and APAC regions in the large-, mid-, and small-cap ranges.
The data contained in the report comes from Hazeltree’s proprietary securities finance platform data, which tracks approximately 12,000 global equities across the Americas, EMEA, and APAC. The data is aggregated and anonymized from the contributing Hazeltree community, which includes approximately 700 asset manager funds.
The report tracks shorting activity in three different metrics:
- Hazeltree Crowdedness Score: This score represents securities that are being shorted by the highest percentage of funds in Hazeltree’s community in a pre-defined category. The securities are graded on a scale of 1-99, with 99 representing the security that the highest percentage of funds are shorting.
- Institutional Supply Utilization: This figure represents the percentage of the institutional investors’ supply of a particular security that is being lent out. The institutional supply utilization rate is an indicator of how “hot” a security is in terms of the supply-demand dynamic. It is possible to see 100% utilization of a security’s availability making it difficult to establish new short positions.
- Hazeltree Community Borrow Fee: This figure is the average weighted fee for what funds in the Hazeltree community are paying to borrow a security. The fee is represented as the annualized cost calculated on the price of the security.
Automakers Lead The Most Shorted Securities
Highlights from the July 2023 report include:
Americas
- In the large-cap group, Tesla Inc (NASDAQ:TSLA) was the most crowded security (99), followed by Ford Motor Co (NYSE:F) (84). Rivian Automotive Inc (NASDAQ:RIVN) stood out with the highest institutional supply utilization (33.21%).
- In the mid-cap section, Wolfspeed Inc (NYSE:WOLF) was the most crowded security, with a crowdedness score of 99. Also notable in this section is Bloom Energy Corp (NYSE:BE), with the highest institutional supply utilization of 36.40% and Wayfair Inc (NYSE:W) with a community borrow fee of 0.44%.
- In the small-cap category, Pebblebrook Hotel Trust (NYSE:PEB) was the most crowded security, with a score of 99. Also in this group, Fisker saw the highest institutional supply utilization (97.16%) and community borrow fee (11.40%).
EMEA
- In the large-cap category, Kering SA (EPA:KER) stood out as the most crowded security (99). Alstom SA (EPA:ALO) led in institutional supply utilization (33.19%), slightly ahead of Sartorius AG (ETR:SRT) at 28.26%.
- In the mid-cap group, Fastighets AB Balder (STO:BALD-B) and Nel ASA (FRA:D7G) were the most crowded securities, with scores of 99 and 94, respectively. This was Fastighets AB Balder’s second consecutive month as one of the top shorted securities in the mid-cap category. NEL ASA had the highest community borrow fee (1.48%) and led institutional supply utilization (69.36%), closely followed by Avanza Bank Holding AB (STO:AZA) (58.41%).
- In the small-cap section, Alfen NV was the most crowded security (99) and also saw an institutional supply utilization rate of 93.51%. Casino Guichard was notable in July for its nearly full institutional supply utilization (99.34%) and the highest community borrow fee in its category at 30.03%.
APAC
- In the large-cap group, Advantest Corp (TYO:6857) was the most crowded security with a crowdedness score of 99. Aeon Group had the highest institutional supply utilization at 16.08%.
- In the mid-cap securities, Sharp Corp (TYO:6753) and Rakuten Group Inc (TYO:4755) both had a crowdedness score of 99, with Sharp also carrying the category’s highest institutional supply utilization at 73.91%. This was Sharp’s second straight month with a crowdedness score of 99.
- In the small-cap section, Alp Alpine Co was the most crowded security with a score of 99, followed by Rorze Corp (TYO:6323) and K’s Holding Corp with scores of 85. Change Holdings Inc led the category in institutional supply utilization at 26.39%.
To view Hazeltree’s July Shortside Crowdedness Report, click here.
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About Hazeltree
Hazeltree is a leader in active treasury and intelligent operations technology. Purpose-built for the alternative asset management ecosystem, Hazeltree’s modular platform aggregates internal and external data, providing a comprehensive view of operations and counterparty relationships while proactively highlighting opportunities to extract more value from every transaction. Hazeltree is headquartered in New York with offices in London and Hong Kong.
