They had lost US$2.5 billion in July as of last Thursday, betting against the 50 US-listed stocks with the highest short interest
Goldman Sachs Group Inc basket of 50 stocks with the highest short interest in the Russell 3000 Index just posted a record ninth straight week of gains.
It has climbed 33 per cent in that time, and clobbered both the Russell 3000 and the S&P 500 Index’s returns of 10 per cent each. That Goldman basket of stocks is up 15 per cent this month.
The run of outperformance by the most-shorted stocks in the market, could signal that the current risk-on sentiment in the market is short-lived.
Goldman, last week urged clients to buy cheap hedges against potential losses.
Source: Bloomberg
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