- Heavily shorted companies such as Gamestop (NYSE:GME), Nikola (NASDAQ:NKLA) and Bed Bath & Beyond (NASDAQ:BBBY) continued gains amid a report that the world's second largest hedge fund dedicated to short selling is scaling down.
- Other shorted names including Ideanomics (NASDAQ:IDEX) rose 18% and AMC Entertainment (NYSE:AMC) gained 2.8% today. Red Robin Gourmet Burgers (NASDAQ:RRGB) gained 5.8%, while Funko (NASDAQ:FNKO) rose 13%.
- Sophos Capital, founded by noted short seller Jim Carruthers, has been telling people that the fund has been winding down some positions since late last year, Institutional Investor reported yesterday, citing an individual familiar with Carruthers.
- The firm, which was started in 2014 helped by a seed investment from Yale's endowment, is not being shut down, people close to the matter told Institutional Investor.
- Gamestop (short interest 145%) gained 14% after soaring 57% yesterday, while Nikola (SI 33%) added 2.7% after an 11% gain in previous two days and Bed Bath (SI 70%) rose 12% after jumping 7% yesterday.