Short sellers see $114bn surge in gains amid U.S. sell-off
Short sellers have enjoyed a boom in gains since the start of this year amid a major US stock market sell-off, according to new data.
Short sellers have seen a $114bn surge in realised and unrealised gains since the start of January, as of Friday, with around 79 per cent of short positions producing profitable returns so far this year, according to data from financial data firm S3 Partners.
The rebound marks a turnaround in fortunes for short sellers who weathered heavy losses last year when the US benchmark S&P 500 rose almost 27% throughout the year.
Short sellers were down $150.5bn in losses last year, with short bets in energy and semiconductors delivering the biggest losses, Reuters reported.
The returns come amid a major slide in the S&P, which has already tumbled 7.5 per cent in January.
Yesterday delivered a tumultuous day for investors as the index plunged as much as 4 per cent before rallying to close up 0.3 per cent for the day.