Short-sellers have been feeling the pain for months, but especially over the last two weeks. In his fourth-quarter letter to investors, Maverick Capital's Lee Ainslie pointed out the unprecedented levels stock prices have reached and why short-sellers have been hurting.
Q4 2020 hedge fund letters, conferences and more
High market caps
Ainslie noted that in his firm's 2019 year-end letter, the five largest S&P 500 companies accounted for a record 18% of the index's total market capitalization. Due to an acceleration of trends like work from home, online shopping and home entertainment, the top 1% of the stocks in the S&P account for 25% of the index's total market cap.
He explained that risk appetites have soared due to unprecedented levels...
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