Short Interest Rises In Mallinckrodt, Drops In J C Penney

Based on Goldman Sachs' review of recent 13F filings, the consumer discretionary sector seemed to account for a big chunk of hedge funds' net weighting. Short interest data shows that this sector makes up for 17% of all short positions. Putting it in the perspective of hedge funds' overweighting in consumer discretionary on the long side, it would appear that they love and hate the sector at the same time.

In Goldman's estimate, 85% of short positions in stocks are held by hedge funds. By that logic, it is valuable to look into where bearish interest is rising...