According to the financial data provider S3 Partners, 37 percent of the freely tradable shares of the manufacturer of meat substitutes are now short.
(Photo: AP)
Dusseldorf From 2018 to 2021, it was a risky but lucrative trade for investors: They bought stocks that had recently fallen sharply and where short sellers were heavily betting on falling prices, and bet on a countermovement in January. On average, these shares rose four percentage points more than an ETF on the leading US index S&P 500. But this year the trade will probably not work out.
In December, the analysis company Schaeffer’s Investment Research filtered out 25 US stocks for which both short quotas and price losses were high. These included meat substitutes maker Beyond Meat, hydrogen truck maker Nikola, and sports betting company Draftkings.
The 25 stocks have lost an average of 15 percent in value since the beginning of the year. The benchmark, the SPDR S&P 500 ETF Trust, also fell significantly in the same period, but only by almost six percent.
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