Short sellers have lost $ 5.5 billion so far in November. Here are the jobs that hurt the most

© Ethan Miller / Getty Images

TO SAY IT

The pain of short sellers, who use leverage to bet an asset’s value will drop, intensified earlier this week after an optimistic update on a vaccine candidate from Pfizer and its partner BioNTech Monday that made Wall Street fight back. stocks like travel and leisure and out of technology-related investments.

These moves led to a strong market surge, which particularly benefited small cap stocks and assets considered undervalued by certain parameters.

Indeed, the Russell 2000 index focused on small caps is up 5.2% so far this week, pushing it to trade to its first record in about two years, while the Nasdaq Composite Index, very technology, is down 1.1% so far on the week, despite rallying nearly 2% on Wednesday. This marks the largest margin of outperformance between the Nasdaq Composite and the Russell on record since 1986, according to Dow Jones Market Data.

Meanwhile, value-driven investments outperform growth, those investments that tend to grow earnings and profits faster than others over time, at least briefly breaking a decadal pattern of outperforming growth assets that tend to reside in the technology and internet categories.

Video: What stocks are catching Jim Cramer’s attention amid the soaring Monday market? (The street)

What stocks are catching Jim Cramer’s attention in the face of the soaring Monday market?

Click to enlarge

NEXT

Lily: Market rally due to ‘pause’ as rotation from growth to value hits an ‘extreme’

So far this week, the iShares S&P 500 Value ETF has risen 5.2%, while its growth counterpart, the iShares S&P 500 Growth ETF, has fallen 0.3% over the same period.

And momentum-driven trades, bets on stocks that are expected to rise because they have done so in the past, fell 2.4% this week, as the iShares MSCI USA Momentum Factor ETF measures.

“Sign of the potential of a post-COVID rotation, [Monday] was the largest one-day gap between the performance of the Momentum and Value factors in the 28-year history of our data, ”Evercore ISI analysts noted in a Tuesday report.

All this seismic movement has led short sellers to record paper losses of around $ 5.5 billion since Nov. 1, according to data provider Ortex Analytics.

Here is a list of the stocks of the companies that they believe have inflicted the most pain on short sellers:

Of course, some transactions have benefited short sellers:

It’s still unclear whether the rally in value will hold up, tech stocks made a comeback on Wednesday as the Dow Jones Industrial Average and Russell 2000 both traded lower on the session.