However, this doesn’t seem likely because SVB is a tiny portion of the two institutions’ portfolios. Shareholders have argued that Vanguard and BlackRock will be forced to hedge their positions by selling out of long positions and recalling short GME shares due to their losses in SVB. BlackRock owned 4.76 million shares, which accounted for 0.03% of its portfolio. 31, Vanguard owned 6.65 million shares of SVB, which accounted for a minuscule 0.04% of its portfolio. Others shareholders have pointed out that Vanguard and BlackRock (NYSE: BLK) are the largest shareholders of SVB, which could potentially benefit GME. Generally, a short interest above 10% is considered high, while a short interest above 20% is considered very high. That’s equivalent to a short interest as a percentage of float of 22.10%. 28, there were 56.85 million shares of GME sold short with a total value of $1.09 million. The connection between increased short positioning in financial and banking stocks leading to a short squeeze in GME is still up in the air.Īs of Feb. This has led to GME stock holders calling for a short squeeze.Īre Shorts going to be the Catalyst for the Mother of All Short Squeezes? Lol #GME #Gamestop /qzrQ5v6z5C Meanwhile, Goldman Sachs noted that “The ratio of bullish to bearish positions has fallen to more than an eight-year low.” While selling out of these positions, hedge funds also increased their bearish bets on banks.
Last week marked the ninth-straight week of hedge funds selling off financial and bank stocks. However, GameStop (NYSE: GME) stock holders have grasped onto a silver lining. The rapid collapse of SVB Financial Group (NASDAQ: SIVB) subsidiary Silicon Valley Bank has shocked market participants, as the largest bank failure since 2008.
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