First, we'd like to pat ourselves on the back a little. While most of the US daytrading class is now in a furore over the "discovery" that most shorted stocks tend to outperform - to put it mildly - when a bunch of autists rams illiquid, heavily shorted names up the collective behind of hedge funds which "legally" collude during idea dinners to put on a basket of shorts, hence why stocks like GME can end up with a synthetic short that is higher than the entire float, none of this should be news to regular readers, as the theme of going long the most shorted names is one we first presented and discussed as far back as 2013:
Presenting The Best Trading Strategy In This Market: Buy The Most Hated Stocks, Short The Most Widely Held.
We then reiterated this strategy in 2014...
The Most Beloved, And Hated, Hedge Fund Stocks Are...
... 2015...
Stocks Soar To Best Week In A Year On "Mother Of All Short Squeezes" Presenting The Top 50 Hedge Fund Longs And Shorts
... 2016...
After Three Years, This Remains The Best Trading Strategy