Feng Huang Wang·2025-11-25 08:11Market Overview - The recent volatility in the US stock market has led to a surge in Oracle CDS trading, with hedge funds focusing on when and where to short the market [1] - Goldman Sachs' latest hedge fund positioning report reveals that "smart money" is not yet ready to short major AI companies, but some institutions are targeting weaker players in the sector [1] Short Selling Trends - The short position in the S&P 500 is currently at 2.4% of total market capitalization, placing it in the 99th percentile over the past five years, significantly above the long-term average since 1995 [1] - The Nasdaq 100 index has a slightly higher short ratio of 2.5%, while small-cap stocks in the Russell 2000 index have a median short ratio of 5.5% [3] Sector Analysis - The utilities sector has seen a notable increase in short positions, rising by 0.3 percentage points to 3.2%, marking one of the highest levels in its history [5][6] - The demand for utility stocks has increased due to their attractiveness in supporting AI data centers, which require high energy consumption [8] Individual Stocks of Interest - Tesla remains the most shorted stock, with JPMorgan surprisingly appearing as the fourth most shorted [10] - Oracle has a short position of $5.4 billion, Intel at $4.6 billion, and General Electric at $4.1 billion, although these amounts represent a small percentage of their overall market capitalizations [12] Emerging Short Opportunities - Bloom Energy is highlighted as the most shorted stock among US companies with a market cap of at least $25 billion, with its stock price having surged significantly before recent declines [12] - Other heavily shorted stocks include Strategy, CoreWeave, Coinbase, Live Nation, Robinhood, and Apollo [14] Hedge Fund Positioning - Goldman Sachs' report is based on data from 982 hedge funds, with total equity positions amounting to $4 trillion, including $2.6 trillion in long positions and $1.4 trillion in short positions [14] - Major long positions among hedge funds include Amazon, Microsoft, Meta, Nvidia, and Alphabet [14]