Cannabis

We are seeing active short selling in the Cannabis Sector over the last 30 days. Total short interest in the 119 U.S. and Canadian cannabis stocks in our portfolio is $3.14 billion with short selling highly concentrated in a handful of names. Short interest of the top twenty most shorted stocks in the sector is $3.06 billion, 98% of the total. While total short interest in our portfolio decreased by $288 million in 2021, short interest has increased by +$346 million over the last thirty days. Canopy Growth Corp (CGC US, WEED CN), Tilray Inc (TLRY US) and Aphria (APHA US, APHA CN) are the largest shorts in the sector.

Total short interest in the almost 200 U.S. and Canadian cannabis stocks in our portfolio is $4.95 billion. Short selling is highly concentrated in a handful of names with short interest of the top twenty most shorted stocks in the sector at $4.86 billion, 98% of the total. Short interest in our portfolio has increased by $1.81 billion over the last thirty days and $1.23 billion as the sector has rallied strongly. Canopy Growth Corp (CGC US, WEED CN) continues to be the largest short in the sector but Tilray Inc (TLRY US) has closed the gap significantly.

Total short interest in the over 200 U.S. and Canadian cannabis stocks in our portfolio is $2.45 billion. Short selling is highly concentrated in a handful of names with short interest of the top twenty  most shorted stocks in the sector at $2.42 billion, 99% of the total. Short interest in the sector has increased by $706 million since the Russell 3000 market low on March 23^rd , which includes $80 million of additional short selling. While short interest in the sector has increased from year-to-date low levels, it has actually decreased by just over $1.0 billion for the year which includes $182 million worth of short covering. Canopy Growth (CGC US\WEED CN) continues to be the largest short in the sector.

Total short interest in the 230 U.S. and Canadian cannabis stocks in our portfolio is $2.80 billion. The top twenty  most shorted stocks in the sector is $2.66 billion, 95% of the total. Short selling continues to be concentrated in just a handful of names which have the trading and stock borrow liquidity to support active and sizable short side activity. Today’s almost +12% rally in the cannabis sector has generated -$311 million in mark-to-market losses, bringing month-to-date losses to -$641 million. May’s losses have eaten away over three-quarters of short sellers’ year-to-date profits, they are up only +$180 million in the top twenty most shorted stocks in the sector.

Total short interest in the 240 U.S. and Canadian cannabis stocks in our portfolio is $2.81 billion. The top twenty  most shorted stocks in the sector is $2.23 billion, 79% of the total. Short selling continues to be concentrated in just a handful of names which have the trading and stock borrow liquidity to support active and sizable short side activity. Today’s +5.5% rally in the cannabis sector has generated -$123 million in mark-to-market losses, bringing month-to-date losses to -$130 million, and year-to-date losses to -$119 million for the top twenty most shorted stocks in the sector.

Cowen Analyst Vivien Azer downgraded several cannabis stocks including Aurora Cannabis (ACB US\ACB CN) and Tilray Inc (TLRY US) which helped push cannabis sector stocks down twice as far as the general market. The top 20 shorts in our cannabis portfolio are down -6.76% in midday trading with the U.S. S&P 500 down only -3.22% and the Canadian TSX Composite down -1.64%.

Short interest of the 240 stocks in our cannabis portfolio increased by $205 million, or +5%, in 2020 as short sellers were active in the sector despite incurring year-to-date mark-to-market losses. Total short interest in our portfolio is $4.28 billion. Short selling in the sector remains very consolidated with the 20 most shorted stocks making up 83%, or $3.53 billion, of the total short interest in the sector and only six stocks with short interest over $100 million. The largest short in the sector continues to be Canopy Growth (CGC US\WEED CN) with $1.30 billion of short interest or nearly one out of every four short selling dollars going their way.

The 10 major shorts in the Cannabis sector, which make up over 95% of all shorts in the sector, were down $28 million in mark-to-market losses today, bringing year-to-date losses to $1.02 billion.

Short sellers have been covering some of their Tilray short positions over the last week. With shares shorted down 292k shares, -7.72%, as Tilray’s stock price declined by 14.24% over that same time period. Shares shorted are 3.49 million shares, $287 million of Short Interest. This is the lowest level of shares shorted since early December.