Published on 28 Dec 2022 on Insider Monkey via Yahoo Finance

15 Most Shorted Stocks Hedge Funds Are Buying

In this article, we will discuss the 15 most shorted stocks hedge funds are buying. You can skip our detailed overview and go directly to the 5 Most Shorted Stocks Hedge Funds Are Buying.

The year 2022 has been a dynamic year for financial markets worldwide. The equity markets have come under selling pressure across the world as investors flock to safe assets amidst a volatile macro-environment. The positioning in treasury bonds and fixed-income assets has increased significantly this year as the yields have continued to go up, with the FED continuing to raise interest rates.

In the stock market, the short sellers have been on the winning side as the S&P 500 declined by 20% YTD. Short selling, also known as shorting or going short, is a trading strategy that involves borrowing and then selling securities to profit from the price of the stock going down. To execute a short sale, an investor borrows the security from a broker and sells it on the market. If the price of the security declines, the investor can buy it back at a lower price, return it to the broker, and pocket the difference as profit. If the price goes up, the investor must buy the security at a higher price and will incur a loss.