- Short sellers of U.S. companies with over $1 billion in market cap gained $127 billion from April 2 to Monday, per Ortex Technologies, as Trump’s tariff plans triggered a $5 trillion S&P 500 selloff, boosting their 2025 profits to $189 billion.
- Ortex data shows global short interest spiked from March 31 to a peak on April 4 before declining, indicating profit-taking or reduced bearishness, with the S&P 500 rebounding 2.8% by Tuesday’s late morning.
- The tariff-induced market plunge created a windfall for bearish investors, though falling short interest post-peak suggests some are locking in gains amid signs of stabilization, as noted by Ortex cofounder Peter Hillerberg.
Short sellers targeting U.S. companies with market capitalizations of $1 billion or more have reaped substantial gains in 2025, capitalizing on a market downturn triggered by President Donald Trump’s sweeping tariff proposals, according to Ortex Technologies. The data and analytics firm reports that these bearish investors, who profit by selling borrowed shares and repurchasing them at lower prices, have amassed $127 billion in paper profits from April 2 through Monday, as the S&P 500 (^GSPC) shed approximately $5 trillion in market value. This sharp selloff, driven by Trump’s tariff plans targeting major U.S. trading partners, has fueled a lucrative period for short sellers, with their total unrealized gains for the year reaching $189 billion by Monday.
Ortex data reveals a surge in short interest across global stock indexes starting March 31, peaking on April 4, before tapering off, suggesting a shift in investor sentiment or profit-taking after the initial market plunge. Peter Hillerberg, Ortex cofounder, told Reuters that the decline in short interest indicates some short sellers are securing their gains, a trend that aligns with the S&P 500’s 2.8% rebound in late morning trading on Tuesday. This uptick hints at a potential stabilization, though the broader context of Trump’s tariffs – designed to reshape trade dynamics – continues to inject uncertainty into markets, benefiting those betting against stock price recoveries.
The $5 trillion drop in the S&P 500 underscores the scale of disruption caused by the tariff announcements, amplifying opportunities for short sellers adept at navigating volatility. With $127 billion gained in just a few days and a year-to-date haul of $189 billion, these investors have exploited a rare convergence of policy shock and market reaction, though the easing of short interest post-April 4 suggests the most intense phase of bearish positioning may be subsiding as the market recalibrates.
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