(Bloomberg) — Short sellers are making profits by betting against a part of the US equity market that is often overlooked by most investors: small-cap stocks.
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The group has seen paper profits of nearly $13 billion this year by wagering on a drop in the prices of small-, micro- and nano-cap shares, according to an estimate by S3 Partners LLC based on the average amount of short positions in the market. That’s in stark contrast to the roughly $140 billion in losses from short sales of mid-, mega- and large-cap stocks, which rallied for much of the year as the economy defied gloomy forecasts, the Federal Reserve edged closer to ending its interest-rate hikes and breakthroughs in artificial intelligence triggered a stampede in tech stocks.
The difference underscores the gulf that opened up in the stock market as companies like Nvidia Corp., Meta Platforms Inc. and Tesla Inc. drove much of the gains. More than half of the stocks in the Russell 2000 — a gauge of smaller…
2023-09-10 15:00:00
Link from finance.yahoo.com