BofA trading desk says hedge funds are reloading short bets on stocks most sensitive to interest-rate moves after covering positions during the recent rally; the desk cautions the reversal could mark a new phase in the shorting cycle. BofA data show small-cap stocks with widespread short interest were down an average 2.47% by 1:40pm New York time on Thursday; the Russell 2000 was down 1.4% by 2:43pm. John Egan, head of global short-selling analysis and tactical solutions at BofA, said stocks wit

BofA trading desk says hedge funds are reloading short bets on stocks most sensitive to interest-rate moves after covering positions during the recent rally; the desk cautions the reversal could mark a new phase in the shorting cycle. BofA data show small-cap stocks with widespread short interest were down an average 2.47% by 1:40pm New York time on Thursday; the Russell 2000 was down 1.4% by 2:43pm. John Egan, head of global short-selling analysis and tactical solutions at BofA, said stocks with broadly held short positions are underperforming, a dynamic that favors short sellers.