Short sellers turned defensive in October as consumer-facing companies became the most crowded trades globally, while technology names continued to attract bearish bets, according to Hazeltree’s latest Shortside Crowdedness Report.
The data, drawn from the firm’s community of more than 600 asset management firms, showed consumer stocks accounted for 41% of global short positions – a 15% rise from September – reflecting growing investor caution as economic growth slows and consumer pricing power wanes.
Hazeltree said the month was marked by significant regional divergence across equity markets, shaped by renewed US – China trade tensions, the US government shutdown, and diverging central bank policies. Despite the defensive tilt, shorting activity in the technology sector remained heavy, representing 23.3% of global short positions – up 17% from the prior month – with the bulk of that concentrated in the Americas.
In the US, Palo Alto Networks overtook IBM as the most crowded large-cap short with a Hazeltree Crowdedness Score of 99, followed closely by IBM at 97. Super Micro Computer reentered the top ten, reflecting persistent skepticism toward high-valuation technology names tied to AI and cybersecurity themes.
Beyond tech, consumer-oriented names dominated crowded short lists across all major regions. In the Americas, companies such as Marriott International and Campbell Soup appeared prominently, with The Cheesecake Factory reaching its highest institutional supply utilisation this year. In Europe, the Middle East, and Africa, luxury group LVMH joined Universal Music Group and Ocado among the most heavily shorted names. In Asia-Pacific, Oriental Land Co. led large-cap crowdedness for the fifth consecutive month, underscoring regional short sellers’ focus on discretionary spending and tourism-related plays.
Hazeltree’s report ranks the ten most crowded short positions by region and market capitalization, tracking around 15,000 global equities via its proprietary securities-finance platform. Each stock receives a “Crowdedness Score” between 1 and 99, quantifying supply-and-demand pressures in the securities-lending market.
In EMEA, Universal Music Group edged out Antofagasta as the most crowded large-cap short for a second month, while in APAC, Oriental Land Co. continued its run at the top. Hazeltree’s data also highlighted consistently high utilisation levels in mid- and small-cap names across regions, including Brenntag SE in Europe and Tokyo Metro in Japan, signalling persistent scarcity of borrowable shares in certain sectors.
