Short Sellers Miss the Tech Slump

Few speculators profited from the spring slump in tech stocks
Caught with their shorts down Illustration by 731

Early April’s sharp swoon in technology stocks should have been good news for short sellers, who borrow shares and sell them, hoping to buy them back at a lower price. It wasn’t. The Nasdaq 100-stock index, dominated by computer and Internet companies, fell 3.1 percent on April 10, its worst one-day drop since November 2011, and declined 7.5 percent from March 4 through April 11. The tumble came as short interest, the percentage of a company’s shares that investors have borrowed and sold, was close to zero at many of the biggest names in the index.

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