U.S. Shorts Up +31 Percent in 2022

Author:

Ihor Dusaniwsky

Managing Director of Predictive Analytics, S3 Partners

Matthew Unterman

Director of Predictive Analytics, S3 Partners

January 4, 2023

U.S. equity and ADR short sellers were profitable in 2022 for the second time over the last five years. Shorts were up $300 billion in year-to-date mark-to-market profits on an average short interest of $973 billion, up +30.83% for the year.

2022 MTM P&L: U.S. Short Selling

Year

Avg Fee

Avg Short Interest

Total MTM P\L

P\L %

2018

0.66%

$846,241,197,509

$75,477,774,637

8.92%

2019

0.73%

$848,550,934,103

($187,675,574,339)

-22.12%

2020

0.74%

$890,462,456,539

($241,603,936,755)

-27.13%

2021

0.64%

$1,132,645,480,725

($142,483,133,246)

-12.58%

2022

0.70%

$973,328,949,081

$300,100,778,699

30.83%

Short-side returns outperformed the long returns of the larger cap S&P 500 and broader Russell 3000 but slightly underperformed the more tech-based Nasdaq. Short sellers have usually outperformed the market over the last five years, earning a higher positive return in down years while not posting as large a negative return on up years. Over the last five years. Short-side negative returns were less than half of the expected negative returns relative to the S&P 500, Nasdaq, and Russell 3000 positive returns.

Yearly Returns

S&P 500

Nasdaq

Russell 3000

Short Selling

2018

-6.24%

-4.66%

-6.99%

8.92%

2019

28.88%

35.23%

28.54%

-22.12%

2020

16.26%

43.64%

18.82%

-27.13%

2021

26.89%

21.39%

24.00%

-12.58%

2022

-19.44%

-33.10%

-20.48%

30.83%

5 Year Avg

9.27%

12.50%

8.78%

-4.42%

But short sellers still needed to be good stock pickers in order to maximize their returns. Even on a more macro level, picking which sectors to short produced wildly divergent returns. Shorts in the Consumer Discretionary and Consumer Discretionary sectors had over 50% positive returns on average while the average Energy sector short was down 28% for the year.

2022 MTM P&L By Sector

Sector

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

Communication Services

0.85%

$75,950,689,946

$43,049,568,532

56.68%

Consumer Discretionary

1.01%

$159,404,932,852

$80,799,856,765

50.69%

Consumer Staples

1.08%

$43,460,850,466

$3,775,285,701

8.69%

Energy

0.48%

$61,034,502,654

($17,063,888,591)

-27.96%

Financials

0.64%

$101,638,605,756

$25,566,635,493

25.15%

Health Care

0.69%

$130,366,885,432

$27,724,283,942

21.27%

Industrials

0.70%

$98,523,186,966

$20,640,659,031

20.95%

Information Technology

0.51%

$200,495,279,781

$95,346,404,985

47.56%

Materials

0.57%

$38,021,118,792

$4,138,267,917

10.88%

Misc. (SPAC)

23.52%

$566,363,343

($17,835,191)

-3.15%

Real Estate

0.35%

$42,176,861,669

$15,495,468,082

36.74%

Utilities

0.36%

$21,689,671,424

$646,072,033

2.98%

2022 U.S. YTD MTM P\L

0.70%

$973,328,949,081

$300,100,778,699

30.83%

Picking the correct sector to short was only half the battle, within each sector we saw a wide range of short-side winners and losers. We can look at the most and least profitable shorts by sector.

In the Communications Services sector, the mega cap tech stocks were some of the most profitable shorts while Elon Musk’s Twitter purchase clobbered shorts with a -27% mark-to-market loss.

Communication Services Most and Least Profitable Shorts in 2022

Communication Services Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

META PLATFORMS INC

META

0.30%

$5,271,225,414

$5,532,848,437

104.96%

SEA LTD ADR

SE

0.30%

$1,884,073,808

$3,478,506,500

184.63%

ALPHABET INC - A

GOOGL

0.30%

$5,548,652,129

$2,668,562,935

48.09%

CHARTER COMMUNICATIONS

CHTR

0.30%

$3,994,687,078

$2,654,651,318

66.45%

NETFLIX INC

NFLX

0.30%

$2,989,466,601

$2,281,312,767

76.31%

AMC ENTERTAINMENT

AMC

10.58%

$1,352,147,355

$2,085,776,939

154.26%

SNAP INC

SNAP

0.30%

$1,113,300,277

$2,031,069,797

182.44%

ALPHABET INC - C

GOOG

0.30%

$3,815,915,205

$1,828,623,506

47.92%

ROBLOX CORP

RBLX

0.30%

$1,252,719,565

$1,414,744,169

112.93%

WALT DISNEY CO

DIS

0.30%

$2,327,546,154

$1,389,953,644

59.72%

-

-

-

-

-

-

Communication Services Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

TWITTER INC ACQUIRED

N.A.

0.34%

$1,345,925,126

($501,563,117)

-37.27%

TMOBILE US INC

TMUS

0.30%

$2,115,207,415

($387,863,786)

-18.34%

ACTIVISION BLIZZARD

ATVI

0.30%

$1,471,973,468

($133,751,689)

-9.09%

WORLD WRESTLING ENT

WWE

0.30%

$478,033,345

($129,775,030)

-27.15%

OMNICOM GROUP

OMC

0.30%

$818,747,232

($89,970,419)

-10.99%

GOGO INC

GOGO

0.43%

$169,687,641

($66,581,547)

-39.24%

IRIDIUM COMM INC

IRDM

0.30%

$251,252,643

($62,185,412)

-24.75%

IQIYI INC ADR

IQ

0.40%

$220,538,803

($56,041,882)

-25.41%

DISCOVERY INC C UNLISTED

N.A.

0.41%

$441,997,581

($52,505,122)

-11.88%

NEXSTAR MEDIA GROUP

NXST

0.30%

$302,546,559

($45,020,017)

-14.88%

Consumer Discretionary shorts were up slightly more than 50% in 2022, with Tesla the most profitable and largest average U.S. short in 2022.

Consumer Discretionary Most and Least Profitable Shorts in 2022

Consumer Discretionary Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

TESLA INC

TSLA

0.33%

$18,906,864,504

$15,851,040,166

83.84%

AMAZON.COM INC

AMZN

0.30%

$10,038,882,282

$6,367,747,113

63.43%

CARVANA CO

CVNA

1.90%

$1,147,953,613

$4,334,403,807

377.58%

LUCID GROUP INC

LCID

10.78%

$2,242,999,651

$3,192,984,971

142.35%

RIVIAN AUTOMOTIVE INC

RIVN

1.64%

$1,729,299,430

$3,098,437,706

179.17%

WAYFAIR INC

W

0.50%

$1,402,766,176

$2,864,170,478

204.18%

NIO INC ADR

NIO

0.30%

$1,212,342,375

$1,335,379,659

110.15%

CARNIVAL CORP

CCL

0.31%

$1,326,863,199

$1,227,829,630

92.54%

DOORDASH INC

DASH

0.30%

$1,235,983,566

$1,211,936,208

98.05%

FORD MOTOR CO

F

0.30%

$1,597,593,678

$974,100,575

60.97%

-

-

-

-

-

-

Consumer Discretionary Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

PINDUODUO INC ADR

PDD

0.30%

$1,224,584,379

($506,650,103)

-41.37%

LAS VEGAS SANDS

LVS

0.30%

$604,378,924

($193,514,886)

-32.02%

AUTOZONE INC

AZO

0.30%

$978,609,724

($193,454,303)

-19.77%

MURPHY USA INC

MUSA

0.30%

$518,457,713

($157,175,935)

-30.32%

H&R BLOCK INC

HRB

0.30%

$388,643,206

($140,517,865)

-36.16%

DILLARDS INC

DDS

0.70%

$476,666,931

($140,277,035)

-29.43%

ACADAMY SPORTS AND OUTDOORS

ASO

0.32%

$468,731,757

($134,629,814)

-28.72%

OREILLY AUTOMOTIVE

ORLY

0.30%

$606,251,348

($131,418,472)

-21.68%

DICK'S SPORTING GOODS

DKS

0.39%

$1,317,848,566

($128,289,457)

-9.73%

ROSS STORES INC

ROST

0.30%

$588,350,486

($125,581,557)

-21.34%

Beyond Meat Inc was the most profitable short in the Consumer Staples sector, while consumer basics like General Mills, Campbell Soup, Coca-Cola, Kellogg, Phillip Morris, and Hershey showed retail strength in an otherwise weak 2022.

Consumer Staples Most and Least Profitable Shorts in 2022

Consumer Staples Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

BEYOND MEAT INC

BYND

34.69%

$683,419,037

$876,418,492

128.24%

COSTCO WHOLESALE

COST

0.30%

$2,181,522,634

$523,118,135

23.98%

OLAPLEX HOLDINGS INC

OLPX

0.30%

$230,306,850

$363,080,418

157.65%

WALGREENS BOOTS ALLIANCE

WBA

0.30%

$992,684,325

$290,882,905

29.30%

BEAUTY HEALTH CO

SKIN

0.30%

$264,143,908

$281,987,771

106.76%

ESTEE LAUDER COS

EL

0.30%

$721,712,634

$250,298,181

34.68%

B & G FOODS INC

BGS

3.44%

$252,654,615

$208,226,873

82.42%

PROCTER & GAMBLE CO

PG

0.30%

$2,051,425,336

$197,265,625

9.62%

TATTOOED CHEF INC

TTCF

18.96%

$110,069,624

$188,163,501

170.95%

HERBALIFE NUTRITION LTD

HLF

0.30%

$189,415,066

$164,410,994

86.80%

-

-

-

-

-

-

Consumer Staples Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

CELCIUS HOLDINGS

CELH

0.30%

$491,247,825

($257,439,456)

-52.41%

GENERAL MILLS INC

GIS

0.30%

$1,054,435,854

($235,253,263)

-22.31%

CAMPBELL SOUP CO

CPB

0.30%

$719,615,311

($197,916,924)

-27.50%

KROGER CO

KR

0.30%

$1,085,347,755

($136,614,816)

-12.59%

COCA COLA CO

KO

0.30%

$1,876,097,443

($134,915,034)

-7.19%

ARCHER-DANIELS-MIDLAND CO

ADM

0.30%

$559,609,937

($131,110,424)

-23.43%

KELLOGG CO

K

0.30%

$1,035,488,724

($128,787,195)

-12.44%

PHILIP MORRIS INTL

PM

0.30%

$890,987,779

($107,127,713)

-12.02%

THE HERSHEY CO

HSY

0.30%

$536,244,790

($85,385,557)

-15.92%

LAMB WESTON HLDNGS

LW

0.30%

$189,417,072

($83,106,067)

-43.87%

The Energy sector was the short sellers Achilles heel, down 28% in 2022, with $9 out of every $10 shorted being an unprofitable trade.

Energy Most and Least Profitable Shorts in 2022

Energy Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

CANADIAN NATURAL RESOURCES LTD

CNQ

0.30%

$1,462,197,122

$425,886,530

29.13%

SUNCOR ENERGY

SU

0.30%

$1,115,720,393

$310,325,480

27.81%

TC ENERGY CORP

TRP

0.30%

$1,085,092,298

$265,095,398

24.43%

TELLURIAN INC

TELL

0.30%

$292,367,875

$146,037,788

49.95%

GEVO INC

GEVO

0.79%

$133,673,485

$85,510,275

63.97%

ENVIVA INC

EVA

0.33%

$187,111,829

$80,028,678

42.77%

LUKOIL PJSC ADR

LUKOY

0.66%

$5,476,619

$51,322,826

937.13%

AEMETIS INC

AMTX

1.61%

$45,724,946

$43,575,666

95.30%

GAZPROM PJSC ADR

N.A.

4.05%

$8,446,381

$41,647,395

493.08%

GREEN PLAINS INC

GPRE

0.30%

$284,459,319

$38,463,191

13.52%

-

-

-

-

-

-

Energy Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

EXXON MOBIL CORP

XOM

0.30%

$3,681,743,609

($1,834,686,785)

-49.83%

OCCIDENTAL PETRO

OXY

0.30%

$3,217,940,291

($1,274,185,118)

-39.60%

CHEVRON CORP

CVX

0.30%

$3,393,025,393

($1,267,415,066)

-37.35%

MARATHON PETRO

MPC

0.30%

$1,457,741,793

($772,615,982)

-53.00%

CONOCOPHILLIPS

COP

0.30%

$1,574,953,308

($736,028,555)

-46.73%

SLB

SLB

0.30%

$1,020,327,211

($653,909,017)

-64.09%

VALERO ENERGY CORP

VLO

0.30%

$1,124,279,857

($538,865,798)

-47.93%

CHESAPEAKE ENERGY CORP

CHK

0.30%

$1,330,370,187

($521,615,280)

-39.21%

HESS CORP

HES

0.30%

$736,420,399

($383,044,288)

-52.01%

PHILLIPS 66

PSX

0.30%

$1,001,194,640

($379,117,184)

-37.87%

Insurance companies were the wrong sub-industry to short in the Financials sector, making up eight out the top ten least profitable trades. Shorting banking, brokerage and cloud based financial stocks proved to be the most profitable shorts in the sector.

Financials Most and Least Profitable Shorts in 2022

Financials Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

S&P GLOBAL INC

SPGI

0.30%

$4,103,374,878

$2,239,615,125

54.58%

COINBASE GLOBAL INC

COIN

2.25%

$1,570,357,034

$2,231,797,163

142.12%

UPSTART HOLDINGS INC

UPST

14.88%

$874,974,248

$2,154,454,079

246.23%

SOFI TECHNOLOGIES INC

SOFI

1.34%

$828,130,502

$1,133,081,757

136.82%

T ROWE PRICE GRP

TROW

0.30%

$1,876,463,006

$976,288,373

52.03%

BLACKSTONE GRP LP

BX

0.30%

$1,419,809,151

$810,749,590

57.10%

SVB FINANCIAL GRP

SIVB

0.30%

$645,761,888

$679,509,337

105.23%

CITIGROUP INC

C

0.30%

$2,031,303,918

$652,968,548

32.15%

BANK OF AMERICA

BAC

0.30%

$2,562,002,061

$596,111,978

23.27%

BANK OF NOVA SCOTIA

BNS

0.47%

$1,106,078,071

$568,351,671

51.38%

-

-

-

-

-

-

Financials Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

PRINCIPAL FINL GRP

PFG

0.30%

$750,382,685

($167,678,911)

-22.35%

PROGRESSIVE CORP

PGR

0.30%

$645,045,633

($149,188,434)

-23.13%

THE TRAVELERS COS

TRV

0.30%

$641,940,109

($145,164,862)

-22.61%

AFLAC INC

AFL

0.30%

$651,779,780

($131,109,391)

-20.12%

LPL FINL HLDGS

LPLA

0.30%

$401,450,703

($115,204,394)

-28.70%

FIRST HORIZON NATL

FHN

0.30%

$559,375,554

($110,548,085)

-19.76%

ARCH CAPITAL GRP

ACGL

0.30%

$231,018,552

($104,108,860)

-45.07%

METLIFE INC

MET

0.30%

$655,089,467

($90,358,268)

-13.79%

UNUM GROUP

UNM

0.30%

$165,760,695

($83,616,238)

-50.44%

ALLSTATE CORP

ALL

0.30%

$506,133,864

($71,229,400)

-14.07%

Shorting the smaller cap securities in the health care sector was a more profitable trade than shorting larger cap biotech and pharma stocks.

Health Care Most and Least Profitable Shorts in 2022

Health Care Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

TELADOC HEALTH INC

TDOC

0.30%

$1,235,971,243

$1,710,105,245

138.36%

NOVAVAX INC

NVAX

0.79%

$656,323,291

$1,634,819,047

249.09%

MODERNA INC

MRNA

0.30%

$2,523,163,092

$1,184,116,491

46.93%

FATE THERAPEUTICS

FATE

0.30%

$507,146,177

$731,986,078

144.33%

ALIGN TECHNOLOGY

ALGN

0.30%

$603,148,380

$673,071,455

111.59%

PFIZER INC

PFE

0.30%

$3,212,354,722

$544,233,771

16.94%

10X GENOMICS INC

TXG

0.30%

$277,593,827

$452,598,033

163.04%

INTELLIA THERAPEUTICS INC

NTLA

0.30%

$371,475,198

$416,696,222

112.17%

TANDEM DIABETES CARE

TNDM

0.30%

$304,172,742

$410,043,446

134.81%

FIGS INC

FIGS

0.43%

$235,187,972

$406,937,758

173.03%

-

-

-

-

-

-

Health Care Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

AMGEN INC

AMGN

0.30%

$4,035,196,248

($862,115,575)

-21.36%

MERCK & CO

MRK

0.30%

$1,770,359,317

($662,408,591)

-37.42%

ELI LILLY & CO

LLY

0.30%

$1,677,218,235

($562,577,290)

-33.54%

BRISTOL-MYERS SQUIBB

BMY

0.30%

$2,392,588,128

($526,219,500)

-21.99%

MADRIGAL PHARMA

MDGL

0.30%

$149,401,494

($516,083,930)

-345.43%

MCKESSON CORP

MCK

0.30%

$996,696,705

($432,840,502)

-43.43%

ABBVIE INC

ABBV

0.30%

$2,054,120,601

($432,801,382)

-21.07%

CIGNA CORP

CI

0.30%

$1,068,076,979

($418,712,625)

-39.20%

GLOBAL BLOOD THERAPEUTICS

N.A.

0.30%

$354,327,913

($360,045,283)

-101.61%

ALNYLAM PHARMA

ALNY

0.30%

$874,364,261

($352,826,451)

-40.35%

Short-side winners outnumbers short-side losers two-to one in the Industrials sector.

Industrials Most and Least Profitable Shorts in 2022

Industrials Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

3M CO

MMM

0.30%

$1,919,495,954

$1,446,160,229

75.34%

UBER TECHNOLOGIES

UBER

0.30%

$1,913,845,535

$1,293,058,472

67.56%

GENERAC HLDGS

GNRC

0.30%

$827,610,905

$1,036,676,297

125.26%

PLUG POWER INC

PLUG

0.31%

$1,389,005,729

$945,656,380

68.08%

LYFT INC

LYFT

0.30%

$670,112,971

$843,056,093

125.81%

TREX CO INC

TREX

0.30%

$544,059,082

$707,521,463

130.04%

NIKOLA CORP

NKLA

13.93%

$457,209,836

$521,306,619

114.02%

STANLEY BLACK & DECKER

SWK

0.30%

$565,967,016

$518,814,966

91.67%

CLARIVATE PLC

CLVT

0.30%

$435,388,558

$493,476,076

113.34%

ZIM INTEGRATED SHIPPING SVCS LTD

ZIM

1.35%

$335,216,758

$445,587,017

132.93%

-

-

-

-

-

-

Industrials Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

LOCKHEED MARTIN CORP

LMT

0.30%

$1,311,803,200

($374,383,959)

-28.54%

NORTHROP GRUMMAN

NOC

0.30%

$832,858,736

($306,316,455)

-36.78%

DEERE CO

DE

0.30%

$1,075,647,003

($253,906,968)

-23.61%

NIELSEN HOLDINGS PLC ACQUIRED

N.A.

0.30%

$528,409,655

($231,942,336)

-43.89%

CATERPILLAR INC

CAT

0.30%

$1,217,668,226

($195,852,534)

-16.08%

QUANTA SERVICES INC

PWR

0.30%

$623,614,862

($163,825,345)

-26.27%

FLUOR CORP

FLR

0.30%

$407,690,765

($157,842,545)

-38.72%

UNITED RENTALS INC

URI

0.30%

$834,124,721

($143,864,429)

-17.25%

RAYTHEON TECHNOLOGIES CORP

RTX

0.30%

$945,854,804

($141,916,645)

-15.00%

ARRAY TECHNOLOGIES INC

ARRY

0.30%

$251,971,519

($130,768,657)

-51.90%

Shorting the Information Technology sector was like fishing in a barrel with $9 out of every $10 shorted being a profitable trade and 70% of all securities in the sector having down years.

Information Technology Most and Least Profitable Shorts in 2022

Information Technology Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

APPLE INC

AAPL

0.30%

$16,848,878,286

$5,354,287,126

31.78%

BLOCK INC

SQ

0.30%

$3,336,408,998

$4,181,965,272

125.34%

MICROSOFT CORP

MSFT

0.30%

$10,573,306,953

$3,906,311,484

36.95%

NVIDIA CORP

NVDA

0.30%

$5,522,928,128

$3,883,657,066

70.32%

ADVANCED MICRO DEVICES

AMD

0.30%

$3,768,664,576

$3,586,581,065

95.17%

SHOPIFY INC

SHOP

0.30%

$1,818,724,378

$2,984,782,663

164.11%

PAYPAL HLDGS INC

PYPL

0.30%

$2,114,640,249

$2,258,513,658

106.80%

AFFIRM HLDGS INC

AFRM

0.43%

$730,214,812

$1,622,541,419

222.20%

INTEL CORP

INTC

0.30%

$2,452,330,264

$1,552,718,078

63.32%

SALESFORCE.COM INC

CRM

0.30%

$2,253,010,682

$1,533,732,420

68.07%

-

-

-

-

-

-

Information Technology Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

ENPHASE ENERGY

ENPH

0.30%

$981,513,641

($368,408,398)

-37.53%

FIRST SOLAR INC

FSLR

0.30%

$433,652,151

($247,086,272)

-56.98%

SAILPOINT TECHNOLOGIES HLDGS ACQUIRED

N.A.

0.30%

$652,277,879

($184,874,038)

-28.34%

IBM CORP

IBM

0.30%

$3,307,861,233

($172,436,076)

-5.21%

FAIR ISAAC CORP

FICO

0.30%

$368,554,374

($155,946,896)

-42.31%

ANAPLAN INC

PLAN

0.35%

$696,484,138

($141,951,310)

-20.38%

GLOBALFOUNDRIES INC

GFS

2.54%

$675,134,874

($112,154,214)

-16.61%

MANDIANT INC ACQUIRED

N.A.

0.32%

$635,318,349

($93,197,180)

-14.67%

SUPER MICRO COMPUTER INC

SMCI

0.30%

$104,828,588

($85,299,684)

-81.37%

VMWARE INC

VMW

0.30%

$501,566,209

($74,201,584)

-14.79%

Shorting the chemical stocks was the winning trade in the Materials sector while shorting steel and iron stocks was the losing trade.

Materials Most and Least Profitable Shorts in 2022

Materials Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

GINKGO BIOWORKS HLDGS INC

DNA

7.97%

$373,844,328

$500,059,532

133.76%

BALL CORP

BALL

0.30%

$657,705,277

$361,796,138

55.01%

SHERWIN-WILLIAMS CO

SHW

0.30%

$620,297,032

$350,823,607

56.56%

MP MATERIALS CORP

MP

0.35%

$417,812,532

$227,669,777

54.49%

ECOLAB INC

ECL

0.30%

$407,032,982

$217,248,179

53.37%

SCOTTS MIRACLEGRO CO

SMG

0.30%

$185,051,158

$201,397,382

108.83%

INTL FLAVORS & FRAGRANCES

IFF

0.30%

$438,817,928

$184,720,135

42.09%

INTL PAPER CO

IP

0.30%

$497,453,430

$166,311,360

33.43%

AMYRIS INC

AMRS

2.72%

$138,185,231

$160,708,755

116.30%

DOW INC

DOW

0.30%

$724,014,264

$148,003,098

20.44%

-

-

-

-

-

-

Materials Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

VALE SA ADR

VALE

0.30%

$680,042,816

($299,201,395)

-44.00%

STEEL DYNAMICS INC

STLD

0.30%

$483,910,268

($222,590,669)

-46.00%

BHP GROUP LTD ADR

BHP

0.88%

$597,874,849

($201,803,925)

-33.75%

ALLEGHENY TECH INC

ATI

0.30%

$403,884,091

($201,264,781)

-49.83%

NUCOR CORP

NUE

0.30%

$1,065,331,001

($151,988,208)

-14.27%

TECK RESOURCES LTD B

TECK

0.30%

$332,588,426

($102,829,969)

-30.92%

QUIMICA Y MINERA CHILE ADR

SQM

0.34%

$178,778,848

($92,199,379)

-51.57%

U.S. STEEL CORP

X

0.30%

$785,067,747

($91,285,639)

-11.63%

RIO TINTO ADR

RIO

0.48%

$867,814,512

($78,520,506)

-9.05%

ALPHA METALLURGICAL RESOURCES

AMR

0.30%

$127,160,883

($77,124,909)

-60.65%

Short selling in SPACs declined significantly in 2022 with just one stock, DWAC, having an average short interest over $100 million for the year.

Misc. (SPAC) Most and Least Profitable Shorts in 2022

Misc. (SPAC) Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

FAST ACQ CORP WARRANT

N.A.

6.38%

$165,186

$424,992

257.28%

SOCIAL CAPITAL HEDOSOPHIA HLDGS CORP VI

N.A.

0.44%

$8,095,890

$274,622

3.39%

PERSHING SQUARE TONTINE WARRANT DELISTED

N.A.

5.12%

$199,806

$232,012

116.12%

AGBA GROUP HOLDING LTD

AGBA

19.56%

$33,454

$189,188

565.51%

TUSCAN HOLDINGS CORP II

N.A.

6.88%

$690,598

$150,855

21.84%

FAR PEAK ACQ CORP

FPAC

2.10%

$13,410,264

$100,300

0.75%

PIONEER MERGER CORP

PACX

1.13%

$1,391,672

$96,085

6.90%

LONGVIEW ACQUISITION CORP II

N.A.

0.89%

$1,977,988

$84,946

4.29%

M3BRIGADE ACQ II CORP

MBAC

1.11%

$3,469,776

$79,699

2.30%

DIGITAL WORLD ACQ CORP WARRANT

DWACW

96.67%

$733,144

$63,868

8.71%

-

-

-

-

-

-

Misc. (SPAC) Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

DIGITAL WORLD ACQ CORP

DWAC

66.70%

$164,693,525

($5,134,292)

-3.12%

FINTECH ACQ CORP V DELISTED

FTCV

3.60%

$16,292,141

($854,587)

-5.25%

ARYA SCIENCES ACQ CORP IV

ARYD

7.45%

$5,494,030

($471,014)

-8.57%

PERSHING SQUARE TONTINE HLDGS DELISTED

N.A.

0.35%

$13,171,948

($387,070)

-2.94%

AURORA ACQ CORP

AURC

3.65%

$6,452,540

($370,294)

-5.74%

INTERPRIVATE IV INFRATECH PARTNERS

IPVI

3.32%

$993,224

($352,026)

-35.44%

KKR ACQ HOLDINGS I CORP DELISTED

N.A.

0.51%

$4,719,970

($306,665)

-6.50%

FORTRESS VALUE ACQ CORP IV UNLISTED

N.A.

0.38%

$3,314,210

($283,451)

-8.55%

PANACEA ACQ CORP II

PANA

1.35%

$4,524,342

($265,300)

-5.86%

NORTH MOUNTAIN MERGER CORP UNLISTED

N.A.

1.81%

$8,495,632

($255,480)

-3.01%

Rising interest rates made shorting the Real Estate sector a forgiving trade almost two-thirds of shorted stocks being a profitable but winning trades earning a +42.8% return while losing trades only down -7.6%.

Real Estate Most and Least Profitable Shorts in 2022

Real Estate Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

OPENDOOR TECHNOLOGIES INC

OPEN

0.31%

$423,235,612

$922,849,630

218.05%

ZILLOW GROUP INC C

Z

0.30%

$1,034,438,612

$769,694,963

74.41%

PROLOGIS INC

PLD

0.30%

$1,643,625,906

$682,924,697

41.55%

DIGITAL REALTY TRUST

DLR

0.30%

$1,100,807,177

$678,721,677

61.66%

MEDICAL PROPS TRUST

MPW

0.30%

$747,577,900

$537,926,826

71.96%

REDFIN CORP

RDFN

0.35%

$180,165,172

$451,529,015

250.62%

SIMON PROPERTY GROUP

SPG

0.30%

$936,446,025

$407,924,079

43.56%

ALEXANDRIA REAL ESTATE EQUITIES

ARE

0.30%

$990,609,066

$388,627,421

39.23%

CROWN CASTLE INTL CORP

CCI

0.30%

$761,894,553

$372,934,795

48.95%

WEWORK INC

WE

6.06%

$256,209,228

$355,976,336

138.94%

-

-

-

-

-

-

Real Estate Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

GLPJ REIT

GLPJF

0.51%

$90,853,330

($126,384,126)

-139.11%

VICI PROPERTIES INC

VICI

0.30%

$1,404,733,854

($41,032,064)

-2.92%

AMERICAN CAMPUS COMMUNITIES ACQUIRED

N.A.

0.30%

$356,408,618

($21,410,661)

-6.01%

GAMING & LEISURE PPTYS

GLPI

0.30%

$167,837,851

($18,210,336)

-10.85%

CYRUSONE INC ACQUIRED

N.A.

0.30%

$1,181,786,089

($12,100,851)

-1.02%

STORE CAPITAL CORP

STOR

0.30%

$235,661,156

($10,914,592)

-4.63%

GETTY REALTY CORP

GTY

0.30%

$42,125,682

($6,931,435)

-16.45%

APARTMENT INVT MGMT CO

AIV

0.30%

$63,767,953

($6,452,044)

-10.12%

VENTAS INC REIT

VTR

0.30%

$355,171,719

($6,280,876)

-1.77%

PREFERRED APT COMMUNITIES ACQUIRED

N.A.

0.30%

$71,722,038

($5,366,145)

-7.48%

Shorting the Utilities sector was coin flip with 55% of every dollar shorted profitable and 45% not profitable.

Utilities Most and Least Profitable Shorts in 2022

Utilities 2022 Most Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

SUNNOVA ENERGY INTL

NOVA

0.30%

$396,565,223

$200,695,346

50.61%

ALGONQUIN POWER & UTILITIES

AQN

0.31%

$246,588,129

$186,269,688

75.54%

EXELON CORP

EXC

0.30%

$595,784,478

$182,094,205

30.56%

NRG ENERGY INC

NRG

0.30%

$567,400,499

$181,871,763

32.05%

DOMINION ENERGY

D

0.30%

$585,903,673

$153,500,951

26.20%

NEXTERA ENERGY PARTNERS LP

NEP

0.38%

$288,632,972

$73,031,357

25.30%

NEXTERA ENERGY

NEE

0.30%

$1,634,436,804

$55,846,268

3.42%

AMERICAN WATER WKS

AWK

0.30%

$340,276,053

$50,321,204

14.79%

PUBLIC SERVICE ENT

PEG

0.30%

$345,756,705

$48,653,226

14.07%

EVERSOURCE ENERGY

ES

0.30%

$324,464,307

$43,167,175

13.30%

-

-

-

-

-

-

Utilities 2022 Least Profitable Shorts

Ticker

Avg Fee

Avg Short Interest

YTD MTM P\L

P\L %

PG&E CORP

PCG

0.30%

$1,098,118,281

($406,138,199)

-36.98%

CONSTELLATION ENERGY CORP

CEG

0.30%

$320,650,932

($143,820,058)

-44.85%

SEMPRA ENERGY

SRE

0.30%

$553,307,494

($86,967,978)

-15.72%

AES CORP

AES

0.30%

$278,029,007

($68,089,093)

-24.49%

SOUTHERN CO

SO

0.30%

$903,253,751

($63,523,576)

-7.03%

CONSOLIDATED EDISON

ED

0.30%

$650,252,189

($62,720,016)

-9.65%

ORMAT TECHNOLOGIES

ORA

0.30%

$391,630,327

($54,278,454)

-13.86%

SOUTH JERSEY INDS

SJI

0.30%

$172,410,193

($54,044,923)

-31.35%

AMERICAN ELECTRIC POWER CO

AEP

0.30%

$704,406,536

($44,791,961)

-6.36%

N.J. RESOURCES CORP

NJR

0.30%

$133,648,714

($31,921,927)

-23.88%

Looking at the overall U.S. stock market, the most profitable short trades in 2022 were:

Most Profitable $ Shorts

Ticker

Avg Fee

Avg Short Interest

Total MTM P\L

P\L %

TESLA INC

TSLA

0.33%

$18,906,864,504

$15,851,040,166

83.84%

AMAZON.COM INC

AMZN

0.30%

$10,038,882,282

$6,367,747,113

63.43%

META PLATFORMS INC

META

0.30%

$5,271,225,414

$5,532,848,437

104.96%

APPLE INC

AAPL

0.30%

$16,848,878,286

$5,354,287,126

31.78%

CARVANA CO

CVNA

1.90%

$1,147,953,613

$4,334,403,807

377.58%

BLOCK INC

SQ

0.30%

$3,336,408,998

$4,181,965,272

125.34%

MICROSOFT CORP

MSFT

0.30%

$10,573,306,953

$3,906,311,484

36.95%

NVIDIA CORP

NVDA

0.30%

$5,522,928,128

$3,883,657,066

70.32%

ADVANCED MICRO DEVICES

AMD

0.30%

$3,768,664,576

$3,586,581,065

95.17%

SEA LTD ADR

SE

0.30%

$1,884,073,808

$3,478,506,500

184.63%

LUCID GROUP INC

LCID

10.78%

$2,242,999,651

$3,192,984,971

142.35%

RIVIAN AUTOMOTIVE INC

RIVN

1.64%

$1,729,299,430

$3,098,437,706

179.17%

SHOPIFY INC

SHOP

0.30%

$1,818,724,378

$2,984,782,663

164.11%

WAYFAIR INC

W

0.50%

$1,402,766,176

$2,864,170,478

204.18%

ALPHABET INC - A

GOOGL

0.30%

$5,548,652,129

$2,668,562,935

48.09%

CHARTER COMMUNICATIONS

CHTR

0.30%

$3,994,687,078

$2,654,651,318

66.45%

NETFLIX INC

NFLX

0.30%

$2,989,466,601

$2,281,312,767

76.31%

PAYPAL HLDGS INC

PYPL

0.30%

$2,114,640,249

$2,258,513,658

106.80%

S&P GLOBAL INC

SPGI

0.30%

$4,103,374,878

$2,239,615,125

54.58%

COINBASE GLOBAL INC

COIN

2.25%

$1,570,357,034

$2,231,797,163

142.12%

And the most un-profitable short trades in 2022 were:

Least Profitable $ Shorts

Ticker

Avg Fee

Avg Short Interest

Total MTM P\L

P\L %

EXXON MOBIL CORP

XOM

0.30%

$3,681,743,609

($1,834,686,785)

-49.83%

OCCIDENTAL PETRO

OXY

0.30%

$3,217,940,291

($1,274,185,118)

-39.60%

CHEVRON CORP

CVX

0.30%

$3,393,025,393

($1,267,415,066)

-37.35%

AMGEN INC

AMGN

0.30%

$4,035,196,248

($862,115,575)

-21.36%

MARATHON PETRO

MPC

0.30%

$1,457,741,793

($772,615,982)

-53.00%

CONOCOPHILLIPS

COP

0.30%

$1,574,953,308

($736,028,555)

-46.73%

MERCK & CO

MRK

0.30%

$1,770,359,317

($662,408,591)

-37.42%

SLB

SLB

0.30%

$1,020,327,211

($653,909,017)

-64.09%

ELI LILLY & CO

LLY

0.30%

$1,677,218,235

($562,577,290)

-33.54%

VALERO ENERGY CORP

VLO

0.30%

$1,124,279,857

($538,865,798)

-47.93%

BRISTOL-MYERS SQUIBB

BMY

0.30%

$2,392,588,128

($526,219,500)

-21.99%

CHESAPEAKE ENERGY CORP

CHK

0.30%

$1,330,370,187

($521,615,280)

-39.21%

MADRIGAL PHARMA

MDGL

0.30%

$149,401,494

($516,083,930)

-345.43%

PINDUODUO INC ADR

PDD

0.30%

$1,224,584,379

($506,650,103)

-41.37%

TWITTER INC ACQUIRED

N.A.

0.34%

$1,345,925,126

($501,563,117)

-37.27%

MCKESSON CORP

MCK

0.30%

$996,696,705

($432,840,502)

-43.43%

ABBVIE INC

ABBV

0.30%

$2,054,120,601

($432,801,382)

-21.07%

CIGNA CORP

CI

0.30%

$1,068,076,979

($418,712,625)

-39.20%

PG&E CORP

PCG

0.30%

$1,098,118,281

($406,138,199)

-36.98%

TMOBILE US INC

TMUS

0.30%

$2,115,207,415

($387,863,786)

-18.34%

Instead of looking at short-side profitability in dollar terms which is dominated by the larger cap most shorted securities, we can look at the most profitable short trades by percentage (with over $100 million in total average short interest):

Most Profitable % Shorts >$100M

Ticker

Avg Fee

Avg Short Interest

Total MTM P\L

P\L %

CARVANA CO

CVNA

1.90%

$1,147,953,613

$4,334,403,807

377.58%

SKILLZ INC

SKLZ

1.16%

$113,919,371

$376,516,647

330.51%

GOODRX HLDGS INC

GDRX

0.39%

$155,193,338

$394,378,927

254.12%

REDFIN CORP

RDFN

0.35%

$180,165,172

$451,529,015

250.62%

NOVAVAX INC

NVAX

0.79%

$656,323,291

$1,634,819,047

249.09%

MATTERPORT INC

MTTR

3.07%

$154,362,243

$383,980,154

248.75%

UPSTART HOLDINGS INC

UPST

14.88%

$874,974,248

$2,154,454,079

246.23%

FARFETCH LTD

FTCH

0.30%

$250,049,827

$562,570,152

224.98%

INVITAE CORP

NVTA

0.79%

$170,272,375

$379,088,990

222.64%

AFFIRM HLDGS INC

AFRM

0.43%

$730,214,812

$1,622,541,419

222.20%

NEKTAR THERAPEUTICS

NKTR

0.30%

$102,408,282

$224,786,983

219.50%

OPENDOOR TECHNOLOGIES INC

OPEN

0.31%

$423,235,612

$922,849,630

218.05%

FUBOTV INC

FUBO

2.52%

$183,168,175

$389,114,762

212.44%

WAYFAIR INC

W

0.50%

$1,402,766,176

$2,864,170,478

204.18%

CARDLYTICS INC

CDLX

0.30%

$118,987,572

$242,172,420

203.53%

RINGCENTRAL INC

RNG

0.30%

$560,357,583

$1,132,470,969

202.10%

APPLOVIN CORP

APP

0.40%

$390,374,030

$786,409,740

201.45%

ASANA INC

ASAN

0.37%

$444,504,952

$881,432,723

198.30%

STITCH FIX INC

SFIX

0.30%

$114,132,700

$221,518,428

194.09%

JUST EAT TAKEAWAY.COM

TKAYF

1.27%

$125,085,949

$241,471,530

193.04%

The least profitable short trades by percentage (with over $100 million in total average short interest):

Least Profitable % Shorts >$100M

Ticker

Avg Fee

Avg Short Interest

Total MTM P\L

P\L %

MADRIGAL PHARMA

MDGL

0.30%

$149,401,494

($516,083,930)

-345.43%

PROMETHEUS BIOSCIENCES INC

RXDX

0.66%

$150,002,888

($311,048,738)

-207.36%

AXSOME THERAPEUTICS INC

AXSM

0.41%

$246,222,253

($281,845,087)

-114.47%

SCORPIO TANKERS INC

STNG

0.30%

$122,623,101

($139,715,153)

-113.94%

TURNING POINT THERAPEUTICS ACQUIRED

N.A.

0.42%

$129,679,721

($145,169,156)

-111.94%

GLOBAL BLOOD THERAPEUTICS ACQUIRED

N.A.

0.30%

$354,327,913

($360,045,283)

-101.61%

PBF ENERGY INC

PBF

0.30%

$347,809,677

($337,143,733)

-96.93%

SUPER MICRO COMPUTER INC

SMCI

0.30%

$104,828,588

($85,299,684)

-81.37%

MAXAR TECHNOLOGIES INC

MAXR

0.30%

$120,482,191

($93,780,530)

-77.84%

TRANSOCEAN LTD

RIG

0.30%

$286,809,577

($218,372,154)

-76.14%

TECHNIPFMC PLC

FTI

0.30%

$142,718,826

($104,553,584)

-73.26%

VALARIS LTD

VAL

0.30%

$127,722,879

($88,861,630)

-69.57%

TEXAS PACIFIC LAND CORP

TPL

0.30%

$395,341,982

($269,489,785)

-68.17%

NOBLE CORP PLC

NE

0.38%

$151,404,775

($100,196,167)

-66.18%

TAL EDUCATION GROUP ADR

TAL

0.30%

$116,185,353

($76,212,761)

-65.60%

SLB

SLB

0.30%

$1,020,327,211

($653,909,017)

-64.09%

ARCH RESOURCES INC

ARCH

1.41%

$529,562,143

($337,974,233)

-63.82%

PEABODY ENERGY CORP

BTU

0.30%

$324,759,238

($198,008,717)

-60.97%

ALPHA METALLURGICAL RESOURCES

AMR

0.30%

$127,160,883

($77,124,909)

-60.65%

HELMERICH & PAYNE

HP

0.30%

$200,313,946

($120,610,651)

-60.21%

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