Short sellers had to accept heavy losses this year. Drew Angerer/Getty Images
This year’s strong stock rally has resulted in big losses for short sellers, according to S3 Partners.
According to the market research firm, short selling has increased amid the rally as hedge funds increase their leverage.
These are the three stocks that caused $30 billion in losses for short sellers, according to S3.
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The monster rally in tech stocks since the start of the year has caused massive losses for short sellers, and investors continue to increase bets on short positions, according to a Friday note from market research firm S3 Partners Research.
According to Ihor Dusanivsky, managing director of S3 Partners, shorting of US stocks rose to over $1 trillion by the end of June, compared to $864 billion at the end of 2022.
Much of this increase in short selling is attributed to hedge funds hedging their long stock bets while adding leverage to their portfolios. “Hedge funds have increased the overall size of their portfolios to gain more exposure to the volatile and bullish market,” Dusaniwsky said.
Overall, short sellers lost $122.1 billion in market value in the first six months of the year, with just three stocks causing a total loss of $30 billion.
With the US Nasdaq 100 index up nearly 40 percent year-to-date, the market research firm has identified the top stocks that have caused the biggest losses for short sellers, and it’s no surprise that they’re largely focused on the technology sector.
These are the top 10 stocks that have caused short sellers the biggest losses so far this year, according to S3 Partners:
10. Coinbase
Sopa Images/Getty Images
Ticker: COIN
Short seller losses: $1.5 billion
Performance since the beginning of the year: 129.2 percent
9. Advanced Micro Devices
AMD CEO Lisa Su
Steve Marcus/Reuters
Ticker: AMD
Short Seller Losses: $1.6 billion
Performance since the beginning of the year: 78.0 percent
8. Broadcom
Reuters
Ticker: AVGO
Short Seller Losses: $2.0 billion
Year-to-date performance: 53.2 percent
7. Palo Alto Networks
Smith Collection/Gado/Getty Images
Ticker: PANW
Short seller losses: $2.3 billion
Year-to-date performance: 79.7 percent
6. Amazon
Getty
Ticker: AMZN
Short seller losses: $3.2 billion (2.9 billion euros)
Year-to-date performance: 55.8 percent
5. Microsoft
Justin Sullivan/Getty Images
Ticker: MSFT
Short Selling Losses: $4.0 billion
Year-to-date performance: 42.4 percent
4. The Meta Platform
Getty Images
Ticker: META
Short seller losses: $4.5 billion
Performance since the beginning of the year: 143.5 percent
3. Apple
Apple
Ticker: AAPL
Losses from short selling: $7.5 billion
Year-to-date performance: 48.1 percent
2. Nvidia
Rick Wilking/Reuters
Ticker: NVDA
Short seller losses: 9.1 billion dollars (8.3 billion euros)
Year-to-date performance: 194.3 percent
1. Tesla
Getty Images
Ticker: TSLA
Short seller losses: 13.0 billion dollars (11.9 billion euros)
Performance since the beginning of the year: 126.5 percent
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