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These Are The Stocks Most Hated By Hedge Funds: Let The Squeeze Begin

Tyler Durden's picture




 

In a world in which the bipolar, schizophrenic markets are dominated by Mrs. Watanabe's daily gyrations of the USDJPY (in response to Kuroda's daily jawboning) which in turn has become the primary signal feeding ES algos now that fundamentals are no longer relevant and that the EURUSD-ES correlation is dead and burried, there continues to be one, almost assured way to generate alpha for those so inclined to gamble with the fastest of the vacuum tubes out there: going long the most shorted stocks, which have become the most convex way of betting that Ben Bernanke will continue to dominate the hedge fund league tables as the world's most accomplished portfolio and risk manager.

Indeed, using our previous representations (Q3 2012, Q4 2012) of the most shorted stocks to generate a "long basket" and sitting it out, has generated some 40%+ annualized returns without fail. Which is why it is now time to look at the most recent roster of stocks most hated by the hedge fund community, which slowly but surely is converting into the much maligned "long onlies" as abandoning hedges is the only way to at least catch up with the market, if not overtake it.

This time, however, instead of looking at the most shorted overall names, we focus on two universes: those companies under $1 billion in market cap most shorted by hedge funds only (i.e., those who have to cover to minimize the Fear Of Missing Out), as well as the larger, $1+ billion market cap companies.

Under $1 billion:

Over $1 billion:

Let the short squeeze begin.

Source: Goldman

 

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Fri, 05/24/2013 - 09:52 | 3595661 transaccountin
transaccountin's picture

how bout gold? no squeeze there right but in the paper junk there will be, mmmmk

Fri, 05/24/2013 - 09:55 | 3595670 SafelyGraze
SafelyGraze's picture

OT:

"us headed for the coldest spring on record"

http://stevengoddard.wordpress.com/2013/05/02/us-headed-for-the-coldest-...

thanks a lot, haarp. 

you could have told us first. then we would have planted more spinach and less watermelon.

Fri, 05/24/2013 - 10:10 | 3595704 Jayda1850
Jayda1850's picture

Very true on the effect on produce. I have all my customers bitching about the availability of all the eastern fruit that should be coming on heavy at this time of the year and everything is getting pushed back by weeks.

Fri, 05/24/2013 - 12:32 | 3596156 nugjuice
nugjuice's picture

Are the attachments supposed to be for Dec 2012? Where are the Q1 13 reports? I think it may be a mistake.

These figures have drastically changed. For example, short interest on AM is 13.36% atm...not 43. Huge difference

Fri, 05/24/2013 - 10:09 | 3595711 Doña K
Doña K's picture

I am not palying with matches. Sorry

I prefer something that is indistructible, mallable, divisible, shiny, has no counterparty risk and you can also wear it.

Any guesses? Sorry I just realized I am in ZH/land

Fri, 05/24/2013 - 11:36 | 3596012 Divine Wind
Divine Wind's picture

 

 

Agreed.

Fri, 05/24/2013 - 10:12 | 3595723 Awakened Sheeple
Awakened Sheeple's picture

They're shorting Ruger?!

Time to make the hedgies our bitch.

Fri, 05/24/2013 - 10:23 | 3595757 SamAdams
SamAdams's picture

Maybe they are betting on increased gun control suppressing future orders resulting in a dwindling backlog?  I ordered a Ruger and it took 6 mos to receive.  This was before Sandy Hook.  If gun orders take this long to fill, who knows what executive orders may be passed in the meantime.  I think the Ruger bet is risky.

Fri, 05/24/2013 - 10:57 | 3595868 Jdog
Jdog's picture

Buy HLF ASAP, Mother or all short squeeze is coming. Carl Icahn will make the NFLX short squeeze look elementry.  load up now!

Fri, 05/24/2013 - 11:05 | 3595897 eclectic syncretist
eclectic syncretist's picture

Believe it or not I shorted NFLX from the 280s down to ~120.  If it gets another squeeze back to the high 200s I might just short it again.

Fri, 05/24/2013 - 11:14 | 3595930 Jdog
Jdog's picture

belie it or not bought NFLX at $90 4 months ago, now at $225. might close it soon and go short! depending on what uncle Carl wants to do! :)

Fri, 05/24/2013 - 09:52 | 3595662 fonzannoon
fonzannoon's picture

Not one gold miner on there? WTF?

Fri, 05/24/2013 - 10:03 | 3595695 unwashedmass
unwashedmass's picture

 

yeah, thought the same thing. this list is bullshit. i've got things with 50% of the float short. 

Fri, 05/24/2013 - 10:07 | 3595705 unwashedmass
unwashedmass's picture

 

interesting. the gold sector is the one sector that Bernanke has rather pointedly ignored in his golden shower upon the markets. Now they are going to suppress the data on the short squeeze implications, and ignore any gains. Can't wait for gold and silver to start imploding, and watch how the media studiously ignores the one sector that holds on and GAINS amid the coming wreckage. 

Anything to save the dollar I guess....its patriotic.........as they stuff shit down our throats, our job is to swallow. 

Fri, 05/24/2013 - 10:46 | 3595841 disabledvet
disabledvet's picture

Phucking twitter man. That thing is worth a ton of money...

Fri, 05/24/2013 - 12:29 | 3596152 Arius
Arius's picture

i would guess a lot of mining shorting takes place through Canada as it is called NAKED SHORT ... the short do not have to borrow the shares ... they just short it .... is it that included?  most likely not ...

Fri, 05/24/2013 - 09:54 | 3595665 Dan The Man
Dan The Man's picture

Going back 3 qrtrs is hardly success "without fail".  Its still gambling

Fri, 05/24/2013 - 09:57 | 3595674 Tyler Durden
Tyler Durden's picture

Of course it is. What's worse, the casino is openly rigged and the pit bosses are betting against you.

Fri, 05/24/2013 - 10:00 | 3595686 Dan The Man
Dan The Man's picture

Yah, I guess there's still lots of fiat to be made...or lost.   Just don't bet the gold

Fri, 05/24/2013 - 10:35 | 3595810 Bearwagon
Bearwagon's picture

In fact the house has gone bust! It has just not been noticed, but that's the reason the casino is rigged. Someone has to hold the bag.

Fri, 05/24/2013 - 10:51 | 3595852 disabledvet
disabledvet's picture

Of course "some tweets are more valuable than others."

Fri, 05/24/2013 - 09:55 | 3595667 CDNX fan
CDNX fan's picture

I predict a stock market crash next week with S&P dropping 12%.

Fri, 05/24/2013 - 10:00 | 3595687 Terminus C
Terminus C's picture

I predict a series of predictions by people who are mostly just guessing over the next... forever.  I also predict that when most of these predictions prove incorrect we will here nothing more about them but when one prognosticator guesses correctly, I predict we will hear loud, "I told you so's" with links to said prediction.

I am Nostradamus.

Fri, 05/24/2013 - 10:09 | 3595715 DeadFred
DeadFred's picture

I still stand by my prediction that the S&P will top out at 1600.

Fri, 05/24/2013 - 10:02 | 3595693 Dan The Man
Dan The Man's picture

Prognostication is a volume game.

Fri, 05/24/2013 - 10:04 | 3595671 The Thunder Child
The Thunder Child's picture

Ruger? I love my tacticool 10/22 it's the only good gun in Canada without stupid magazine restrictions.

Fri, 05/24/2013 - 10:12 | 3595722 DeadFred
DeadFred's picture

It says here that BLYTH Inc is into housewares and specialties, I thought they just sold paper silver and gold.

Fri, 05/24/2013 - 09:57 | 3595673 fonzannoon
fonzannoon's picture

Gundlach is long aapl.

Fri, 05/24/2013 - 09:57 | 3595677 Son of Loki
Son of Loki's picture

I thought shorting was illegal.

Fri, 05/24/2013 - 10:00 | 3595684 Jim in MN
Jim in MN's picture

OT, two massive earthquakes in the Pacific, one 8.2 off Siberia and one 7.4 near Fiji....

http://www.iris.edu/seismon/

 

Fri, 05/24/2013 - 10:03 | 3595696 Wakanda
Wakanda's picture

Weird rumblings in Greenville, CA.

Fri, 05/24/2013 - 10:09 | 3595714 TeamDepends
TeamDepends's picture

The Overlords desired a bit of folly, and began to strum their haarp....

Fri, 05/24/2013 - 10:17 | 3595736 youngman
youngman's picture

Does this include naked shorts..or just the "legal" ones...

Fri, 05/24/2013 - 10:19 | 3595743 Skin666
Skin666's picture

OT

Ambrose Evans Pritchard of the Telegraph has finally fucking lost it!

 

Read this: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100024696/the-bank-of-japan-must-crush-all-resistance-and-will-do-so/

This man is an idiot...

 

Fri, 05/24/2013 - 10:41 | 3595825 Fuh Querada
Fuh Querada's picture

a weather vane in the wind...changes direction as often as a honeymoon dick goes up and down...

Fri, 05/24/2013 - 10:24 | 3595767 taketheredpill
taketheredpill's picture

NFLX !!!!!

Fri, 05/24/2013 - 10:28 | 3595780 haskelslocal
haskelslocal's picture

Looks like this was provided by the BLS.

Holdings as of 12/31/12? Priced in February?

Fri, 05/24/2013 - 10:39 | 3595805 blackbishop
blackbishop's picture

This list is a little outdated (12/31/2012), do you have a fresher one please?

Fri, 05/24/2013 - 10:39 | 3595821 Fuh Querada
Fuh Querada's picture

BLYTH Inc at 27% short interest - how optimistic!

Fri, 05/24/2013 - 11:01 | 3595886 Tombstone
Tombstone's picture

Is this why the market is still rising; Benny is in a short squeeze? 

Fri, 05/24/2013 - 11:17 | 3595939 AgShaman
AgShaman's picture

It's nothing a properly placed political donation can't fix....followed by a "Solyndrical Bailout" or ten

Fri, 05/24/2013 - 11:23 | 3595957 dcohen
dcohen's picture

I swear Bernanke buys the dips, I swear. The FED got its eyes on the markets and as soon as the shorters see an oppurtunity, he rips their faces. He leaves no behind left and I think he is determined to end the idea of shorting stocks, put the fear in them, think three times before trying again. I don't care about the legalities, those psychopaths at the FED will find a way to buy stocks.

Fri, 05/24/2013 - 11:30 | 3595993 kragsquest
kragsquest's picture

Oh yes, Spectrum Pharm, I owned the penny stock Vipro for a little while which is connected to it.  Hedge Fund money is generally amoral, run by HFT programs as the traders do much of nothing except for those critical moments when they need to pull the trigger, timing is everything.  What do they do the rest of the day?  Surf the internet, share porn with other traders??  We would like to know if these people are really doing anything significant in society or are just a bunch of ass kissing parasites good at covering up when insider cases may implicate them....

Fri, 05/24/2013 - 12:27 | 3596146 Palladin
Palladin's picture

Anybody notice that at the bottom of both tables there is a footnote that says "Holdings as of December 31, 2012" so the information is 5 months old, and the "Pricing is as of February 15, 2015" so that makes the prices almost 3 months old. Seems so yesterday.....

More timely information can be found here:  http://www.highshortinterest.com/all/

At least the data presented there is current as of May 10, 2013

 

 

Fri, 05/24/2013 - 12:31 | 3596154 Nathan American
Nathan American's picture

6 month old data???? not exactly breaking news.

Sat, 05/25/2013 - 12:01 | 3598359 Morrotzo
Morrotzo's picture

Hahaha. The second company with an approximately 50 percent of the managers shorting it, Sturm Ruger and Co., is a

goddamned rampaging bull. It'll be around 50 to 60 bucks a share or more from here to eternity. Do you really think

that firearms the quality of Ruger are going to become CHEAPER in the near future?

If this is half a year old data, the shortsters got their heads ripped off. The stock is up about 10 bucks since last December.

 

 

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