Hedge Funds Target Tesla, Ford, and Charter Communications

Hedge funds in the United States have significantly increased their short positions against auto giant Tesla (NASDAQ:TSLA), American automaker Ford (NYSE:F), and communications company Charter Communications (NASDAQ:CHTR) throughout the past year, according to a report released by data firm Hazeltree on Thursday.

Short bets involve investors who bet over the decline in a company’s stock price. In such cases, of various others, these three firms are now emerging as the most shorted large-cap stocks in the U.S. for the second consecutive year. While the number of funds betting against Ford decreased in 2023, compared to what it was in the previous year, Tesla and Charter Communications are still popular targets for short sellers. However, there is no data about the short positions company in the stock market.

Hazeltree’s report also highlighted that technology firms attracted the highest number of short positions in the United States, while consumer products and healthcare companies were the primary targets for short sellers in the mid and small-cap segments, respectively.

Tim Smith, managing director of data insights at Hazeltree, suggested that the focus on consumer cyclical stocks by short sellers could be attributed to concerns about high inflation and interest rates.

Companies from Europe, the Middle East, and Africa (EMEA) also found themselves on the short sellers’ radar, with German medical equipment maker Siemens Healthineers, Universal Music Group (AS:UMG), and Swedish private equity firm EQT (ST:EQTAB) among the notable names. Interestingly, German online takeaway food company Delivery Hero reappeared as the top shorted mid-cap stock in the EMEA region for 2023.

In the Asia-Pacific region, Commonwealth Bank of Australia (OTC:CMWAY), Japanese chip testing equipment company Advantest Corporation, and tech conglomerate SoftBank Group (TYO:9984) emerged as the top shorted large-cap companies, according to the report.

The data analyzed in Hazeltree’s report was sourced from its securities finance platform, which covers approximately 15,000 company stocks globally.

As of the time of reporting, the mentioned companies have not provided any official response to requests for comment regarding the increased short positions.

The surge in short bets against Tesla, Ford, and Charter Communications reflects the ongoing volatility and uncertainty in the financial markets, with investors closely monitoring economic indicators and industry trends to inform their investment strategies.