Strategies · Core
Short Interest Effect — Long-Short
Short high short-interest names and long low short-interest names — crowding and borrow as a cross-sectional signal.
Definition
Rank on short interest / float (or days-to-cover). Long the unshorted, short the heavily shorted. The short leg is expensive to borrow and squeeze-prone. Combined with momentum or quality it is less of a lottery.
Why it matters
High SI can mean informed shorts or a squeeze setup. The LS version tries to own that disagreement.
Case
2021 meme names: the short leg is a gamma/SI spiral. A mechanical short-the-high-SI rule was the punchline.
How to read it
SI definition, borrow cost, and a squeeze filter. Days-to-cover without borrow availability is a poster.
No query has been run yet. Which is tragically normal for most knowledge systems, but we are trying to evolve past decorative databases.