Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

Cross Asset Strategy

<ul>
<li>The performance of equities, especially highly shorted equities, since the turn of the year has been remarkable. (See below for names.)</li>
<li>This performance was achieved via the embrace of the riskiest attributes: small caps, aggressive industries, lack of profitability, leverage, etc... as well as short covering. See below.</li>
<li>We're betting this begets a reversal over the coming weeks and months.</li>
</ul>


The performance of equities, especially highly shorted equities, since the turn of the year has been remarkable. (See below for names.)
This performance was achieved via the embrace of the riskiest attributes: small caps, aggressive industries, lack of profitability, leverage, etc... as well as short covering. See below.
We're betting this begets a reversal over the coming weeks and months.


The Next Leg Is Down: Risk Factors Are Stretched