Several familiar names currently dominate The Big Shorts page here on Fintel. GameStop Corp (US:GME), Teva Pharmaceutical Industries Ltd (US:TEVA, IL:TEVA) and Microsoft Corporation (US:MSFT) are the three biggest short positions held by hedge funds as disclosed in recent SEC filings. The list is compiled from 13F and NPORT filings to determine the value of short positions for each stock.
Among those hedge fund holders, Wolverine Asset Management has the most disclosed short positions in the top 10 list.
Short selling is a trading strategy that allows investors to profit from the declining prices of stocks. The strategy can be used with put and call options or traditionally in the form of borrowing shares from a broker and directly selling them on market with the intention to profit by repurchasing them at a lower price. However, it is also a high-risk strategy that can result in significant losses if the market moves against the short seller.
This month the largest disclosed net short position is held by Quinn Opportunity Partners LLC with the infamous meme stock GameStop Corp (US:GME). The fund has a significant short exposure of $1.89 billion held entirely in put options.
Israeli drug maker Teva Pharmaceutical Industries Ltd (US:TEVA, IL:TEVA) is the second most significant net short position of $1.81 billion, held by Wolverine Asset Management LLC. Teva develops and manufactures generic drugs. Wolverine’s position consists of $1.86 billion of put options and $48.46 million worth of direct shares.
Microsoft Corporation (US:MSFT) is the third largest net short position of $1.11 billion, held by Millennium Management LLC. Microsoft is a tech conglomerate that develops and licenses software, services, and devices and is pioneering next gen artificial intelligence. The position comprises a $2.17 billion put option exposure, $817.14 million of call options and $240.35 million in directly held stock.
Tesla Motors, Inc. (US:TSLA) is fourth with a net short position of $1.09 billion made up of only put options and held by Deer Park Road Corp. Tesla is an American electric vehicle and clean energy company.
Canadian Pacific Railway Company (US:CP, CA:CP) is fifth with a net short position of $1.08 billion, held by Equitec Proprietary Markets, LLC. Canadian Pacific is a railway transportation company that provides freight and logistics services across Canada and the United States. The position comprises $11.91 billion worth of put option exposures, $1.57 billion in call options and $9.25 billion of directly held stock exposure.
Booking Holdings Inc (US:BKNG) ranks in sixth with a net short position of $1.05 billion, held by Susquehanna International Group, LLP. Booking Holdings is an online travel company that operates several brands, including Booking.com, Priceline, and Kayak. The position is made up of $2.48 billion in put options, $878.67 million in call options and $548.34 million of direct shares held by the institution.
ALSO Holding AG (CH:ALSN) is seventh on the list with a net short position of $986.75 million of put options, held by Washington Capital Management Inc. ALSO Holding is a Swiss technology distributor that provides IT hardware, software, and services.
Booking Holdings Inc (US:BKNG) has a second position in the top 10 net shorts worth $935.74 million, held by Citadel Advisors LLC. The firm has $1.97 billion in put options, $897.61 million worth of call options and $138.61 million of directly held stock. The various short positions have sprung up in recent months as funds bet against travel stocks as inflation grapples with consumer discretionary spending budgets.
First Solar, Inc. (US:FSLR) has a net short position of $882.27 million, held by Jane Street Group, LLC. First Solar is an American solar panel manufacturer that produces thin-film modules. Jane Street’s position is made up of $1.22 billion of put options, $283.25 million of call options and $56.15 million of direct stock.
Max Stock Ltd (IL:MAXO) has a net short position of $698 million, held by Wolverine Asset Management LLC. Max Stock is Israel’s leading extreme value retailer of everyday essentials, now with 54 stores across the country. Citadel Advisors also holds a net short position of $39.73 million.
This article originally appeared on Fintel
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