10 Underperforming Stocks Targeted By Short Sellers
Short-sellers have invited the wrath of millions on the internet, causing one of the biggest short squeezes in the history of financial markets. Year to date, GameStop short sellers alone have lost close to $5 billion, according to a report. The army of retail investors, day traders and “YOLO investors” are now paying a lot of attention to other stocks that are shorted by major hedge funds. Despite the inherent risks and misunderstandings linked to it, short-selling is a proper investment strategy that has its rationale, thesis and roots. Unlike the common opinion, short-sellers are not looking to make profits by ruthlessly targeting random companies without any reason. Short-selling involves speculating on the decline of a stock based on its valuation concerns, internal fraud, financial vulnerabilities and other problems. Usually, hedge funds and institutional investors engage in short-selling strategies for both speculation