Unhedged What are the hedge funds shorting?
131 snips
Nov 25, 2025 In this discussion, Robin Wigglesworth, editor of FT Alphaville, shares insights on the rising short interest in hedge funds. He explores the implications of shorting behaviors, especially against tech stocks like Bloom Energy and the crypto market. They analyze why hedge funds are cautious around major AI winners despite high expectations. Robin also dives into the mechanics of short selling and market frothiness in tech bond issuance, revealing how strategic shorting can signal shifts in investor sentiment.
AI Snips
Chapters
Books
Transcript
Episode notes
Hedge Funds Target AI Adjacent Weakness
- Hedge funds are nibbling at AI-adjacent weakness rather than shorting mega-cap AI winners like NVIDIA or Microsoft.
- They target second-tier players and utilities that overinvest in power and infrastructure for data centers.
Oracle Seen As The Weak Link In AI Herd
- Oracle is seen as a weaker AI-era tech and has rising short interest and CDS activity.
- Traders buy CDS as a fancy way to bet on credit deterioration rather than outright default risk for large tech firms.
Surge In Tech Debt Raises Fragility Risks
- Tech issuance has exploded, with investment-grade tech debt and data-center project finance surging.
- This flood of borrowing could create fragile, overlevered players if AI economics disappoints.
