August 28, 2007: Financials and the shorts

Here is a brief summary of short positions in the financial sector. A more in depth look may be cause for selective investing as a contrarian or, on the other hand, following the institutional herd.

For the month ended August 15th, short interest was up 5% for the sector overall, compared with a 3% decrease for the companies in the S&P 500. Across the board, the largest changes were by the Brokers and Multinational Banks (up 49%) and the Reinsurers (down 17%).

Largest 1 month short interest % change:

LAZ 98%
STT 111%
NCC -33%
ETFC 60%
FNM 111%
NFS -52%
IVZ -50%
PGR 64%
ACGL -79%

Largest short interest as % of float:

BSC 10.4%
STT 3.5%
FITB 4.4%
OXPS 13.9%
FED 54.5%
GNW 6.1%
AMG 20.5%
RLI 9.9%
MRH 11.8%

Most days to cover:

COWN 4.3
STT 3.0
FITB 5.1
MXTX 13.9
DSL 7.9
PNX 12.1
AMG 7.4
MCY 12.2
MRH 9.4

Largest one month price % change:

COWN -36%
BK -14%
NCC -21%
ETFC -40%
TMA -61%
KMA -34%
FIG -28%
AFG -20%
AHL -19%

The above mentioned stocks were extracted from the following order in the financial sector:

Brokers and Multinational Banks
Securities Processors
Regional Banks
Online Brokers and Mkt Structure
Speciality and Mortgage Finance
Life Insurance
Asset Management
P&C Insurance
Reinsurance