7/3/2023 0 Comments Benchmark chaos groupIt’s a big swing from last year, when investors betting against the electric-vehicle maker earned about $17 billion, making it the best-returning short target. proved to be the short trade that dealt the most pain this quarter, with mark-to-market losses of more than $6.7 billion as the shares rebounded from a brutal 2022. It follows last quarter’s loss of about $44 billion, a period when the S&P 500 Index was starting its recovery from last year’s lows. It’s a stunning recovery for tech, after the Nasdaq 100 tumbled 33% in 2022, its worst year since the great financial crisis.įor short sellers, the hit from the tech sector overwhelmed gains elsewhere: The group is on track for a loss of roughly $47 billion this quarter, according to S3. Meanwhile, the tech-heavy Nasdaq 100 Index is up about the same amount and entered a bull market Wednesday. The KBW Bank Index is down about 19% this year, for its worst quarter since early 2020. “Usually their price changes are not as dramatic as the tech and health-care stocks.”īenchmark indexes lay out the stark divide in performance. ![]() ![]() “In recent memory, I’ve never seen banks in the top shorts,” said Ihor Dusaniwsky, S3’s head of predictive analytics, who has tracked the data since 2015. Meanwhile, the crisis that enveloped banks crushed those shares broadly. ![]() The results highlight the forces at play in markets to start 2023, which saw investors flood back to beaten-down tech stocks with strong balance sheets and cash flows. First Republic Bank and Signature Bank rounded out the quarter’s three most profitable shorts. Speculators who sold borrowed shares of collapsed lender SVB Financial Group, wagering the stock would decline, reaped the biggest windfall - a mark-to-market profit of roughly $1.1 billion through Thursday, data compiled by S3 Partners show. (Bloomberg) - Investors betting against bank stocks earned more than $2 billion this quarter as turmoil engulfed the battered sector, making the shares the most profitable for short sellers to start 2023.
0 Comments
Leave a Reply. |