Here is a list of short sellers of Nokia (NYSE:NOK). They usually are long Apple (Nasdaq:NOK). So if Apple weakens some and Nokia gets a pulse watch for price action downward on Apple upward on Nokia. Everyone cannot leave the room at the same time.
Blue Ridge Capital: Short -1.34% Nokia
Coatue Management: Short -0.8% Nokia
Eton Park Capital: Short -0.95% Nokian Renkaat
Lone Pine Capital: Short -0.57% Nokia
Maverick Capital: Short -1.7% Nokia
Viking Global: Short -2% Nokia
Dichotomy here as some value investors have gone long the troubled handset maker due to valuation, while many GARP investors short the company due to its supposed market share problems.
Hedge funds often go long the ‘best of breed’ companies shorting the struggling companies in same sector. When the struggling company gets better financial life signs. Value investors start to nibble and short strategy is no longer compelling. Short positions are ultimately bullish.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti