We recently released a list 15 Most Crowded Hedge Fund Stocks That Are Targeted by Short Sellers. In this article, we will explore the stance of Hyde Corporation (NYSE:HEI) with other most crowded hedge fund stocks targeted by short sellers.
Hedge funds pile up into stocks is a signal of belief. After all, if institutional investors are supporting a company, there must be a good reason, right?
Things get interesting when the same stock ends up with a short interest. Some investors support where the company is successful, others bet on its downfall. This contradiction is often tracked eagerly by investors, as it can lead to explosive movements between the two sides.
For example, consider a scenario where stocks held by high interest and high hedge funds begin to rise. Short sellers are rushing to close their positions when everyone is rushing to buy more of the already popular stocks, triggering a strong bull rally.
We decided to shortlist the stock of candidates who are most likely to attend the rally. To list our 15 most crowded hedge fund stocks that are targets for short sellers, we only considered at least $1 billion in market cap, with short-term interest of at least 3%. We then rank these stocks in the number of hedge funds in their portfolio.
A fighter jet formed, revealing the capabilities of the company's defense department.
Number of hedge fund holders: 67
Short interests: 4.02%
Haike Corporation (NYSE: HEI) is an aerospace company. Its stock has surpassed the market so far this year, but the higher interest is putting investors in an advantageous position. HEI trades at 65, which is higher than its 5-year average of 60.4. This high valuation has somehow fueled the confidence of short sellers, although hedge funds have not bought stocks for no reason.
Heico Corporation (NYSE:HEI) is one of the stocks that actively manage their own shares. The Mendelson family has been running the company for thirty years, but the work has not been bad. In addition, the employee’s stock incentive structure means that every employee feels part of the company and would rather go into stocks when there is a chance.
It is the future growth that keeps the valuation of Haike case high. The company's flight support team grew by 7% in the long term, while other segments have shown better growth in recent times. Operating margins continue to rise, once again demonstrating management's capabilities. So, what do sellers look at in stocks?
Haike (NYSE:HEI) has a stable business and its growth rate is impressive. However, the failure to provide expected figures in the October quarter is likely to cause some short-term problems. Management fixes it on inventory sales, and short sellers may think that the high valuation is not justified. The stock fell significantly in the months following the earnings announcement, but almost all losses were restored, largely due to the reliable strength of the business.
Overall, hey Ranked 14th On our list of the most crowded hedge fund stocks, these stocks are targets for short sellers. Although we acknowledge the potential of HEI as an investment, our belief is that certain AI stocks have greater hope and provide higher returns in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than HEI, but their earnings are trading at less than 5 times the price, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Inside monkey.