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Hedge fund managers gathered Wednesday at the 2024 Sohn Investment Conference in New York to share their best investment ideas. It kicked off with "Next Wave Sohn," a session that features ideas from rising stars within the hedge fund industry. Endocrinology is an $8 billion market, but the cumulative market size, including the company's future therapy targets, is upward of $200 billion, which includes estimates for future obesity drugs, the investor said. It has CA$75 billion market cap with an "unbelievable record of success," according to the investor. The short seller noted that the company has a $5 billion market cap with about $4.8 billion of debt.
Persons: Sohn, Eric Wolff, Wolff, Michelle Ross, Cushing, Ross, Eli Lilly, Crinetics, XBI, Nikhil Daftary, Alimentation, Daftary, Chris Drose, Nate Koppikar, Fahmi Quadir Organizations: Investment, Gumshoe Capital Management Investment, Pason Systems Energy, Pason Systems, Gumshoe Capital Management, StemPoint, Pharmaceuticals, Crinetics Pharmaceuticals, StemPoint Capital, Endocrinology, Novo Nordisk, P Biotech, NK Capital Investment, NK Capital, Starbucks, McDonalds, Bleecker Street Capital, Orso Partners, Justice Department, Federal Trade Commission, Safkhet, Global Education Locations: New York, Canada, U.S
Trump Media, which began being publicly traded last week, is now far and away the most expensive U.S. stock to sell short, according to S3 Partners , a leading financial data marketplace platform. You need a lot of cash — and guts — to short Trump Media stock right now. "It's the most expensive stock borrow," Dusaniwsky said of Trump Media. As of Wednesday, the short interest in Trump Media — or value of shares borrowed for short trades — was about $255 million. The investors who are able to borrow shares from their brokers for a Trump Media short sale are "good customers" of those brokers, he said.
Persons: Donald Trump, Ihor Dusaniwsky, Dusaniwsky, Trump, , there's, Nick Wells Organizations: Trump, Trump Media, Investors, Partners, S3 Partners
Politicians and auto executives on both sides of the Atlantic are calling for more protectionist measures. After Tesla lost its crown to BYD as the world’s biggest E.V. Otherwise, the Tesla C.E.O. said, Chinese E.V. The continent’s auto sector employs 13 million people and generates 8 percent of the bloc’s G.D.P.
Persons: China Tesla, , Warren Buffett, Tesla, Elon Musk, ” Luca de Meo, Vivienne Walt, DealBook, , June’s E.U Organizations: Renault Group’s, Airbus Locations: China, Europe, June’s
Deliveries are the closest approximation of sales reported by Tesla but are not precisely defined in the company's shareholder communications. Tesla's Model 3 is about $4,000 more than that. Aging lineup, early days for Cybertruck While EV sales are still gaining popularity worldwide, the growth rate has slowed. In a push for end-of-quarter sales, Musk recently mandated that all sales and service staff install and demo FSD for customers before they hand over their cars. Despite its name, Tesla's premium option requires a human driver at the wheel, ready to steer or brake at any moment.
Persons: Florence Lo, Tesla, Troy Teslike, Tesla's, China's BYD, BYD, Lei Jun, Emmanuel Rosner, Rosner, Elon Musk, Krisztian Bocsi, Rohan Patel, Musk, Sandy Munro, Forbes, Larry Magid, Donald Trump, He's, he's, Investor Ross Gerber, who've, Brad Gerstner, Gerstner, FSD Organizations: Reuters, FactSet, Independent, Qin, Tesla's, China Passenger Car Association, Bloomberg, Deutsche Bank, Tesla, Volvo, Elon, Tesla Inc, Getty, IF Metall, IF Metall's, IF, Pew Research, Gallup, Investor, CNBC, Bears, S3 Partners, U.S Locations: Beijing, China, China In China, Shanghai, Europe, Red Sea, Iran, Gruenheide, Germany, Brandenburg, Berlin, Swedish, Sweden, U.S, Austin , Texas, San Jose , California, Fremont , California, Florida, Haiti, Texas, Delaware
Trump Media & Technology Group Corp — Donald Trump's social media company — is a flashing red light of a stock. In other words: It seems like a perfect candidate for short sellers — investors who bet that a company's stock price is overvalued and will fall. But not that much, for now: More than 3 million shares of Trump Media have been shorted, says short-tracker S3 Partners. Related storiesS3's managing director, Ihor Dusaniwsky, offers one explanation: It's particularly hard to short Trump's company for technical reasons. There is extraordinarily little stock borrow available in [Trump Media] to support new short sales and stock borrow rates are extremely high.
Persons: Donald Trump's, Ihor, Trump's, I'd Organizations: Service, Trump Media & Technology Group Corp, Nasdaq, Business, Trump Media, SPACs, GameStop Locations: U.S
Anderson exposes corporate fraud and ponzi schemes through his company Hindenburg Research. Congress (IYC) staged a protest demanding a probe into the allegations of fraud made against the Adani group in the Hindenburg research report. Controversial practice Breakout Point has tracked 74 Hindenburg short bets it has opened since 2017. watch nowBiggest hits One of Hindenburg's biggest recent campaigns centered on a collection of businesses owned by Indian billionaire Gautam Adani. In January 2023, Hindenburg published a report accusing Adani Group companies of "brazen stock manipulation and accounting fraud."
Persons: Nate Anderson, Anderson, Carl Icahn, Gautam Adani, Ivan Cosovic, Hindenburg, LPP, Gautam Organizations: Hindenburg Research, Washington Post, The Washington Post, Getty, The, CNBC, Indian Youth Congress, Central, Indian Youth Congress Office, Congress, Hindustan Times, GameStop, Hindenburg's, Adani, Securities and Exchange Board of India Locations: The New York, NY, New York, DELHI, India, New Delhi, Gdansk, Russia, Ukraine
That's not to say predictions of a commercial real estate rebound are a sure bet. Here are four signs that support Gray's prediction that the commercial real estate market may be bottoming. (New York Community Bank had previously purchased $2.7 billion in Signature's loans and deposits, but not the real estate loans.) According to David Seifert, partner at private equity real estate firm Velocis, there are some sweet deals to be had in secondary sales of private-equity funds tied to real estate. The road aheadWhere Gray sees signs of bottoming, others think commercial real estate has much further to fall.
Persons: Warren Buffett, Buffett, Paul Getty, Getty, Steve Mnuchin —, Blackstone, Mnuchin, Donald Trump's, George Soros, John Paulson, It's, Jonathan Gray, Jim Garman, That's, Barry Sternlicht, Gray, Tracy Chen, Chen, BGO, secondaries There's, Ares, Brian King, King, David Seifert, Seifert, Velocis, Goldman Sachs, Dan McNamara, McNamara, Scott Rechler, wallop, Janet Yellen, Rechler, there's Organizations: Business, Goldman, Reuters, Starwood, Brandywine Global, Federal Reserve, . Bank, New York Community Bank, FDIC, Signature Bank, Community Bank, Fund Management, Community Preservation, New, Commercial Observer, Blackstone, Homes, Digital Realty, Polpo, RXR Locations: Blackstone, , New York, New York, BREIT, Real, Velocis
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. This story is available exclusively to Business Insider subscribers. Goldman Sachs, Barclays, and Ken Griffin's hedge fund Citadel are among the names who've bet against Karp's company, per MarketBeat. Karp also acknowledged in his CNBC interview that some Palantir staff had left due to its vocal support for Israel. Disclosure: Palantir Technologies CEO Alexander Karp is a member of Axel Springer's shareholder committee.
Persons: , Palantir, CNBC's, Alex Karp, who'd, Karp, Goldman Sachs, Ken Griffin's, We've, it's, Peter Thiel —, Alexander Karp, Axel Springer's, Axel Springer Organizations: Service, Business, US Army, Refinitiv, Barclays, Citadel, CNBC, Israel, Hamas, Palantir, Insider Inc Locations: Tel Aviv, Israel
Palantir CEO Alex Karp skewered short sellers — investors who bet on the decline in a company's stock price — in an interview with CNBC on Wednesday. "I love burning the short sellers," Karp told CNBC's Sara Eisen on "Money Movers." "Almost nothing makes a human happier than taking the lines of cocaine away from these short sellers, who like, are going short on a truly great American company. Not just ours, but just love pulling down great American companies so they can pay for their coke." When a stock goes up, short sellers are on the hook to buy back shares, potentially at a huge loss.
Persons: Alex Karp skewered, Karp, CNBC's Sara Eisen, Palantir Organizations: CNBC, American, Intelligence, U.S . Army, YouTube
"That's just created this once-in-a-decade momentum," said Mehdi Hosseini, an equity research analyst covering the stock at Susquehanna International Group. While the company posted robust results and guidance, analysts have cast doubt over the magnitude of recent stock moves, which include a 48% post-earnings rally and a 19% drop during Tuesday's session. ARM mountain 2024-02-08 Arm since reporting earnings One key factor at play is the limited number of shares in the marketplace. Traders typically buy shares short as a bet that the price of an asset will fall. The unwavering excitement around AI that's driven an investing frenzy over the last year may also be a factor at play with Arm.
Persons: That's, Mehdi Hosseini, Needham, Charles Shi, Ryuta Makino, there's, SoftBank, Hosseini, Shi Organizations: Holdings, Susquehanna International Group, Apple, Nvidia, Devices, ARM, GAMCO Investors, Retail, Tesla, Vanda Research, Partners, Traders
New York Community Bank 's ongoing struggles have increased investors' anxiety around the regional bank sector. Official short-selling data from the exchanges that would encompass the latest regional bank fallout has not yet been released. The short crowding on NYCB shares surged to 70% in the week ended Feb. 2, up from 45% the prior week. S & T Bancorp 's short crowding score has jumped to 83% in the week ended Feb. 2, which marks a 37% increase from the prior week. and CrossFirst Bankshares ' short crowding scores have risen 30% each to 69% and 71%, respectively.
Persons: Hong Li, Li, Simmons, CrossFirst, Norman Lowery, , Michael Bloom Organizations: York Community Bank, Citi Research, Citi, T, P Global, T Bancorp, LSEG, Financial Corp, CrossFirst, Financial, CFB Locations: Midwest, CFB YTD
Hong Kong CNN —China’s top securities regulator has limited short-selling, in its latest effort to stem a protracted $6 trillion-dollar stock market rout that began in 2021. The China Securities Regulatory Commission announced Sunday it would “fully” suspend the lending of restricted shares on bourses in mainland China. The Shenzhen stock exchange is the second-largest in mainland China after Shanghai. Bloomberg/Getty ImagesCalm returns but challenges remainChinese authorities have stepped up their measures to stem the stock market rout over the past week. A day later, in an unprecedented move, regulators said they were considering evaluating the performance of the heads of state-owned companies based on their stock market value.
Persons: Hong Kong CNN —, , Ken Cheung, Evergrande, ” Cheung, Hong, Li Yunze, Pan Gongsheng Organizations: Hong Kong CNN, China Securities Regulatory Commission, Mizuho Bank, Bloomberg, Shanghai Shenzhen, Administration of Financial, People’s Bank of China Locations: Hong Kong, bourses, China, Shanghai, Shenzhen
Following the trade, Jim Cramer's Charitable Trust will no longer own shares in the construction equipment maker. Analysts at JPMorgan recently reminded investors that Caterpillar stock has a history of pulling back after the company reports fourth-quarter earnings. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB.
Persons: Jim Cramer's, Jim Cramer, Jim Organizations: Caterpillar, CAT, JPMorgan, Investors, Jim Cramer's Charitable, CNBC
And these short sellers pile up on top of each other with their biased opinions," Capablanca said. But because of the increased number of short sellers, a stock can blow past that and remain elevated over multiple days. So even if the market seems dead, nothing is there to trade, they will force a trade," Capablanca said. This rule helped him avoid Vivos Therapeutics (VVOS), a stock that many short sellers he knew tried to short. Such an outcome could lead to a continued elevated price, driving short sellers out for weeks, he said.
Persons: David Capablanca, lockdowns, Capablanca, it's, POL Organizations: Capablanca, Guardian, Yahoo, Traders, Therapeutics, Yahoo Finance, shorting C4 Therapeutics
CNBC's Jim Cramer told investors about a potentially bullish tell: Watch for when management buys back shares of a stock with high short interest. Short interest refers to the total number of shares that have been sold short and not yet repurchased. If a company's management starts buying back shares with high short interest, it could be a sign they think the stock won't go any lower. So short sellers may start to quickly repurchase the shares to minimize their losses, leading to a short squeeze that ultimately sends the stock higher. "Insider buying plus heavy short interest can equal raging buy, as long as you avoid situations where the shorts are determined to crush the stock at any cost."
Persons: CNBC's Jim Cramer, Cramer, , Jackie Wilson, it's
While short bets are mounting in these stocks in recent weeks, some of the upward momentum could be due to a short squeeze playing out. Electric vehicle maker Fisker also saw short interest rise more than 10% to more than 49% of its float. That included artificial intelligence stock C3.ai, with short interest down a little over 3% to about 35% of shares outstanding. Short interest climbed 8% to 32.6 million shares shorted. Short interest increased 6% during the period to more than 27 million shares.
Persons: Fisker, Kohl's, Atmus, , Fred Imbert Organizations: Nasdaq, CNBC Pro, New York Stock Exchange, Holdings, Luminar Technologies
Hedge fund short sellers have lost $43 billion in recent days as stocks rally, the Financial Times reported. The S&P 500 is on track for its best month since July 2022. With a more than 7% gain in November, the S&P 500 is on pace for its best month since July 2022. AdvertisementThe FT notes that analysts say some hedge funds have had to repurchase stocks to cover their short bets as a "short squeeze" pushed share prices even higher. According to S3 data, bets against technology, healthcare, and consumer discretionary were the most painful for hedge funds.
Persons: , Stocks, Goldman Sachs, Nicholas Colas, Jessica Rabe Organizations: Financial Times, Service, Wednesday Financial, S3 Partners, Federal Reserve, Carnival Corp
Jim Chanos tore into Elon Musk's supporters Sunday in an expletive-laden post on X. "If you are a cult member who believes rockets exploding are a 'success'... please sit down and STFU," the legendary short-seller said. The Wall Street Journal reported Friday that Chanos would be shutting down his hedge funds. AdvertisementJim Chanos appeared to rip into supporters of Elon Musk in an expletive-laden rant Sunday, just days after the Wall Street Journal reported the legendary short-seller and longtime Tesla bear would be closing down his funds. "The marketplace for what I do has changed," Chanos told the Journal, likely referring to short sellers' struggles in 2023.
Persons: Jim Chanos, Elon Musk's, , Elon Musk, Tesla, Chanos, he's, Musk's Tesla Organizations: Elon, Street, Service, Wall Street Journal, Enron
Ben Foldy — Reporter at The Wall Street Journal
  + stars: | 2023-11-19 | by ( Ben Foldy | ) www.wsj.com   time to read: +1 min
Ben FoldyBen Foldy is an investigative reporter in The Journal's finance section, based in New York City. He often writes about fraud, financial crime, cryptocurrency and corporate malfeasance. Before this role, Ben covered the automotive industry from Detroit, with a focus on safety, federal policy, startups and the electric transition. In 2022, Ben reported and hosted the second season of The Journal's "Bad Bets" podcast, focused on the rise and fall of Nikola founder Trevor Milton. Ben worked for Bloomberg News and the Financial Times before joining the Journal in 2019.
Persons: Ben Foldy Ben Foldy, Ben, Nikola, Trevor Milton, Craig Newmark Organizations: Bloomberg News, Financial Times, Craig Newmark Graduate School of Journalism, City University of New, McGill University Locations: New York City, Detroit, multibillion, Carvana, City University of New York
Hedge fund Qube makes $835 million bet against HSBC shares
  + stars: | 2023-11-17 | by ( ) www.reuters.com   time to read: +1 min
REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON, Nov 17 (Reuters) - Hedge fund Qube Research & Technologies has made a 672 million pound ($835.43 million) bet against the shares of HSBC (HSBA.L), a regulatory filing showed. The hedge fund, spun out from Credit Suisse, has taken a short position in HSBC shares worth 0.57% of the lender's market capitalisation, the filing with Britain's Financial Conduct Authority shows. It comes after HSBC reported disappointing third-quarter profits amid losses from its China real estate exposure. A short position is a bet that a company's stock price will decline. The short position was first reported by the Financial Times on Friday.
Persons: Dado Ruvic, Qube, Lawrence White, Louise Heavens Organizations: HSBC Bank, REUTERS, Research, Technologies, HSBC, Credit Suisse, Britain's Financial, Authority, FCA, Financial, Thomson Locations: China
Uncle Sam cleverly goes long on short sellers
  + stars: | 2023-11-15 | by ( John Foley | ) www.reuters.com   time to read: +4 min
The United States is a rare place where financial regulators hand out cash for information that leads to successful enforcement. Moreover, the rewards are not just for corporate insiders, but also short sellers. In 2019, the SEC doled out $60 million, a sum it has already exceeded nearly five-fold this year. Skeptical investors – notwithstanding their sleuthing skills – generally trade on information regulators could in theory find themselves. Short sellers aren’t always welcome, but some are undeniably being put to good use.
Persons: Julia Nikhinson, Carson Block, Kyle Bass, Waters, It’s, aren’t, , Jeffrey Goldfarb, Sharon Lam Organizations: U.S, Capitol, Congress, REUTERS, Reuters, U.S . Securities, Exchange Commission, Hayman Capital, SEC, Bloomberg, Futures Trading Commission, European, Harvard University, Workers, Thomson Locations: Washington , U.S, United States
CNBC's Jim Cramer on Monday said last week's rally may not be a temporary change to the market. "I'm not going to throw cold water on the reversal in the bond market that lowered long-term yields dramatically and repulsed the selling hoard at the five and change level on the thirty-year." Like many rallies, Cramer said last week's market gains were "hard-fought victories" for the bulls that were not expected to occur in an over-sold market where the "gloom was palpable." After last week's Federal Reserve meeting, where rates held steady, Cramer suggested it's possible there may not be any more rate hikes in the next few months. However, he admitted that the thesis is contingent on whether any major component in inflation, like real estate prices, accelerates.
Persons: CNBC's Jim Cramer, Monday, I'm, Cramer Organizations: Reserve, Apple, Nvidia Locations: China
That year, he had also taken up an interest in stock trading. Increased accuracy on VWAPThe volume-weighted average price (VWAP) is a chart line that tracks the average price traders paid for a stock. If a stock's price is too far above the VWAP, it signals that it's overbought, and vice versa. But as more short sellers chase the stock's price down, it can get overcrowded, he noted. Pop Culture Group (CPOP) stock's trading was halted on October 31 after the stock rallied quickly.
Persons: David Capablanca, Capablanca, TraderSync, David Olivares, Olivares, He's Organizations: University of California, pharma, Capablanca, Interactive, Traders, Reviva Pharmaceuticals Holdings, shorting, InMed Pharmaceuticals, Culture Locations: Los Angeles
Musk also repeatedly said, during that call, that Tesla was facing serious challenges with the start of production of its long-awaited Cybertruck. Shares have dropped about 18% since the company's earnings call Oct. 18. We believe that Tesla may have to guide to deliveries below consensus next year AND face lower margins." Bernstein, with its bearish view of Tesla, is forecasting 2.15 million deliveries from Tesla next year with earnings per share of $2.59 compared to the consensus view of 2.3 million deliveries and earnings per share of $3.30. Shares of ON Semiconductor , which supplies chips for EVs, were down 20% Monday after the company offered disappointing Q4 guidance.
Persons: Elon Musk, Porte, Tesla, Musk, It's, Bernstein's Toni Sacconaghi, Bernstein, Sacconaghi Organizations: SpaceX, Tesla, Viva Technology, Porte de, Panasonic, U.S, Cybertruck, ON Semiconductor, CNBC Locations: Paris, Japan, Ortex, London
Short selling involves borrowing a stock to sell it in the expectation the price will fall, then repurchasing the shares and pocketing the difference. Short interest in the U.S. market totaled $927 billion as of Thursday, according to analytics firm S3 Partners. The new rules require institutional investors to report their gross short positions to the SEC monthly and certain "net" short activity for individual dates on which trades settle. "Investment advisers will face more risk when selling short, which will harm investors, market participants, and market efficiency," said its CEO Bryan Corbett. SEC officials said the new rules, which the commission agreed upon in a 3-2 vote, support the agency's efforts to police the practice.
Persons: Jim Bourg, Gary Gensler, Gensler, Stephen Hall, FINRA, Bryan Corbett, Douglas Gillison, Chris Prentice, Michelle Price, Chizu Nomiyama, Chris Reese Organizations: U.S . Securities, Exchange Commission, SEC, REUTERS, GameStop, Financial Industry Regulatory Authority, Partners, Stephen Hall of Better, Justice Department, Thomson Locations: Washington, U.S
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