S3 Says 5 of Situational Awareness's Top 10 Holdings Saw Flat or Lower Shorts
Updated
Updated · Bloomberg · Aug 5
S3 Says 5 of Situational Awareness's Top 10 Holdings Saw Flat or Lower Shorts
1 articles · Updated · Bloomberg · Aug 5
Summary
S3 Partners found no significant rise in short selling across Situational Awareness's main positions, undercutting claims that predatory shorts drove the hedge fund's losses.
Bob Sloan said the fund instead appears to have been hit by highly concentrated bets in crowded trades, which forced it to unload stocks at deep discounts.
Half of the fund's top 10 holdings showed flat or declining short interest, while bearish bets increased only in some names rather than across the portfolio.
The data shift the focus from coordinated short-seller pressure to portfolio construction risk at Situational Awareness.