Short Sellers Reap $13 Billion on Gaps in Winner-Take-All Market;

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Short Sellers Reap $13 Billion on Gaps in Winner-Take-All Market; Bets against smaller-cap stocks pay off despite broader rally; Shows gulf that opened as big tech stocks drove market's gains
Carmen Reinicke and Alexandra Semenova - Bloomberg
Short sellers are raking in profits by betting against a part of the US equity market overlooked by most investors: small-cap stocks. The group has seen paper profits of nearly $13 billion this year by wagering on a drop in the prices of small-, micro- and nano-cap shares, according to an estimate by S3 Partners LLC based on the average amount of short positions in the market.
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I wonder what predictive analytics these firms might be using.
Maybe Professor Engle's ARCH/GARCH methods of forecasting volatility?
 
mikeriley said:
I wonder what predictive analytics these firms might be using.
Maybe Professor Engle's ARCH/GARCH methods of forecasting volatility?
More...

They are unlikely using garch models.

Garch models are primarily used by liberals from blue areas like Connecticut, New York, and Chicago. We know those guys never make any money due to their weak minds.
 
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