Credit Suisse sounds warning on heavily shorted stocks
Beware heavily shorted stocks heading into reporting season, Credit Suisse’s quantitative analysts have warned clients, with crowded trades prone to falling apart on better-than-expected news.
Beware heavily shorted stocks heading into reporting season, Credit Suisse’s quantitative analysts have warned clients, with crowded trades prone to falling apart on better-than-expected news.
“We generally found there is alpha to be had by joining crowded short trading, but that the associated stocks are most prone to reversal risks in the lead up to and during reporting periods," Credit Suisse said in a note to clients on Monday morning.
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