Goldman Sachs Group Inc (GS US) down $15.58 per share, or -7%, on weakness in the financial sector and news that Malaysia is looking to recoup nearly $600 million in fees and commissions paid for $6.5 billion in bond deals for its state fund 1MDB. 1MDB is in the news for embezzlement and money laundering suspicions.
VXX short sellers are down $660.4 million, +50.70%, in mark-to-market losses in 2018. Also, with an average cost to borrow of 3.33% fee, shorts have paid away -$36.1 million in stock loan borrow fees in 2018, to finance their short positions.
Every week, S3 tracks short sellersâ€™ equity positions in the US and Canada, revealing the trades that delivered positive results or missed the mark.Â After tracking $953 billion worth of short positions, the following is a list of this weekâ€™s top five best and worst performing equity shorts.
Short interest in the Diversified Banking and Investment Banking & Brokerage Sectors is $16.7 billion, an increase of $2 billion, or 14%, over the last month. Short interest had been declining slightly in 2017, down 5% to $14.7 billion in mid-September, but short selling has increased over the last month albeit it has been relatively flat over the last week in anticipation of 3rd quarter earnings releases. Short sellers have built up their positions and are sitting tight on their exposure as they await earnings results.
As the end of the 3rd quarter approaches and with expectations managed downward, short sellers continue to increase bearish bets against the largest banks.Â S3 Partners real-time short interest analytics calculates that the real time dollars at risk on the short side has increased $1.9 billion since the end of the June quarter.Â The largest increases in exposure are Deutsche, Goldman and Wells Fargo, climbing 69.9%, 50.7% and 33.3% respectively.Â S3 estimates that short interest in the Global Banking Sector to be $7.5 billion, which is down $296 million month on month.
Every week, S3 tracks short sellersâ€™ equity positions in the US, revealing the trades that delivered positive results or missed the mark.Â After tracking $887 billion worth of short positions, the following is a list of this weekâ€™s top five best and worst performing shorts.