Despite the recent rally in cyclical stocks, which has been powered by Trump’s commitment to increase infrastructure spending within the United States, hedge funds still hold massive short positions in industrial stocks according to research from Goldman Sachs’s equity strategy.
Hedge Funds Short Industrials
The most disliked subsector is Construction Machinery And Heavy Trucks, a subsector that has produced a year-to-date return of 6%. Despite these modest gains hedge fund short interest as a percentage of market capitalization has risen to 33.2% although the estimated number of days required to liquidate short positions is one.
The second most disliked sector is Trading Companies And Distributors. Down 2.9% year-to-date short interest as...
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