YWR: Hedge Fund Short Squeezers

Disclosure: Data Exercise Only. Not investment recommendations.

Wouldn’t it be nice to buy shares in good companies (beating numbers, with decent valuations) which are also highly shorted by hedge funds?

Wouldn’t that be the best of both worlds?

I merged the Goldman Hedge Fund VIP Short list (March 2023) with the YWR Factor model (June 2023).

Here are the top 15 sorted by short interest as a % of float.

Note: the short interest may have changed since March.

Ford, Caterpillar and United Rentals look good.

They have a good YWR Total Score (positive earnings momentum, valuations, price momentum) and high short interest.

JP Morgan is on the VIP short list (lower down) and it looks good too.

Note: the YWR factor ranking is complex, but basically it’s EPS revisions, P/E’s and recent price momentum.

Here is what the YWR Factor model sees with Ford, Cat and United Rentals.

Remember these are favorite short ideas at hedge funds.

Ford price trending up.

Ford EPS estimates for 2023 and 2024 trending up.

Ford FY1 P/E attractive at 8x.

Caterpillar positive price trend.

CAT eps revisions positive.

CAT’s FY1 P/E relatively attractive at 13x.

United Rentals price.

United Rentals EPS revisions. Good upgrades earlier in the year.

Valuation is decent with a P/E of 11x.

Here is a link to the table with all 49 stocks (Goldman Hedge Fund VIP Short Basket with YWR Factor Ranks).