Short Sellers Target Oil Stocks After Monster Rally

Rising oil prices have been a boon for energy investors. The Energy Select Sector SPDR Fund, an ETF that tracks the performance of the Energy Select Sector Index, is up 36% year to date. Meanwhile, the VanEck Oil Services ETF, which tracks the overall performance of US-listed companies in the oil services sector, including oil equipment and oil drilling, is up 45% year-to-date. The S&P 500 is off -8.4% for the year so far.

Q1 2022 hedge fund letters, conferences and more

However, it looks as if some investors and traders believe that this positive performance could be too good to last. According to data from TwoRivers Analytics, which specializes in short selling, the strongest short-selling activity over the...