Tesla Dominates as the Most Shorted Security in the Americas
According to the latest Shortside Crowdedness Report, Tesla has reclaimed its status as the most shorted large-cap security in the Americas this September. This report, released by Hazeltree, showcases the top 10 crowded shorts across the Americas, EMEA, and APAC, providing valuable insights into market trends.
A Snapshot of the Crowdedness Report
The Hazeltree report is published monthly and collates significant data on shorting activities within various market sectors. The analysis is derived from Hazeltree's proprietary securities finance platform, which monitors around 15,000 global equities. It compiles anonymous data from a vast network of approximately 700 asset management funds, reflecting a comprehensive overview of market sentiment.
Insights from the Report
Tim Smith, the managing director of data insights at Hazeltree, voiced in the report, "It's remarkable to observe that Tesla has once again emerged as the most shorted large-cap stock in the Americas, a position it held consistently until July. Additionally, we noted a growing trend in retail securities, with brands like Columbia Sportswear, Hermes International, and Hugo Boss making appearances in our latest lists of crowded shorts."
Key Highlights from September
The report underscores several crucial points regarding short selling in the Americas:
Americas Overview
- Tesla leads the large-cap category with a Hazeltree Crowdedness Score of 99, confirming its place as the most crowded security in this tier. Tractor Supply Company holds the highest institutional supply utilization at 12.83%.
- In the mid-cap category, Bloom Energy and Shift4 Payments tied, each scoring an impressive 99. MP Materials Group recorded the highest institutional supply utilization at 82.29%.
- For small-cap stocks, Wolfspeed remains the front-runner, also scoring 99, while Novavax has the highest institutional supply utilization at 48.40%.
EMEA and APAC Highlights
Furthermore, the report identifies trends in other regions:
- H & M Hennes Mauritz AB has taken the lead in the EMEA large-cap category with a score of 99, pushing LVMH down to an 84 after a long tenure at the top.
- In the mid-cap EMEA space, Alstom retained its position with a score of 99. Hugo Boss's supply utilization reached 53.39%.
- Among small-cap stocks, Basic-Fit NV also scored 99 with a 91.50% supply utilization.
- Within the APAC region, Commonwealth Bank of Australia and Toyota share the spotlight in large-cap with a score of 99, with Nissan Motor Corp leading in supply utilization at 65.38%.
- Rohm Co. leads mid-cap securities at 99, boasting a 42.91% supply utilization.
- Konica Minolta and Suruga Bank Ltd are tied at 99 for small-cap stocks, with Nxera Pharma Ltd registering a 39.10% utilization.
Understanding the Metrics of Short Selling
The Shortside Crowdedness Report breaks down the shorting dynamics into three key metrics, painting a clearer picture of the market:
Hazeltree Crowdedness Score
This critical score indicates the percentage of funds shorting specific securities within Hazeltree's network, normalized on a scale from 1 to 99, with 99 indicating the highest level of interest.
Institutional Supply Utilization
This metric reflects the share of a security’s supply that institutional investors lend out, giving insight into the hotness of a security in supply-demand terms. A utilization rate nearing 100% could hinder new short positions.
Borrow Fee Insights
This figure denotes the average fee required to borrow a security in the Hazeltree network, expressed as an annualized percentage of the security's price.
Conclusion and Future Reports
To stay informed on the evolving landscape of short selling, stakeholders and investors are encouraged to review Hazeltree's September Shortside Crowdedness Report, which will continue to be a pivotal asset in understanding market trends.
Frequently Asked Questions
What does the Hazeltree Shortside Crowdedness Report assess?
The report evaluates the most crowded shorted securities across major global markets, identifying trends and establishing metrics for investor insight.
Why is Tesla significant in the report?
Tesla holds a critical position as the most shorted large-cap stock in the Americas, reflecting significant market sentiment and interest.
What does a Hazeltree Crowdedness Score of 99 signify?
A score of 99 indicates that the security is being shorted by the highest percentage of funds in the Hazeltree community, signaling strong interest from investors.
How does institutional supply utilization affect short selling?
High institutional supply utilization suggests limited availability for short positions, affecting the ability of investors to initiate new shorts.
Where can I access more reports from Hazeltree?
Hazeltree's reports, including the recent September report, can be viewed through their official channels, highlighting important trends in securities.
