CNEQ, the Alger Concentrated Equity Fund, enters the final week of August with a short interest story that has moved fast — and in one direction.
Short positions have more than doubled over the past week. Estimated shares short rose 142% in seven days, climbing to roughly 497,000 shares and pushing the short interest percentage to 8.4% of free float. That is a sharp acceleration from the 0.9% reading noted just ten days ago. The one-month change is nearly 89%, meaning the bulk of this build is very recent. Whether this reflects tactical hedging against concentrated growth exposure or a more deliberate bearish view on the fund's holdings, the pace is notable.
The lending market, however, does not look strained. Availability remains extremely loose at just over 2,000% — meaning there are roughly twenty shares available to borrow for every one currently lent out. That is down sharply from last week's peak but still far above the 52-week low of 26% recorded in late July, when the borrow market was genuinely tight. Cost to borrow has drifted lower from its July highs near 10.6% and now runs around 5.2%. For context, a month ago it stood above 7.7%. The combination of rising short interest and loosening availability tells a nuanced story: more shorts are opening, but there is no shortage of shares to lend. Squeeze pressure is limited from the current setup.
The ORTEX short score is modest at 35.3 — roughly in the lower third of the universe — and has crept up gradually from 31.9 on August 13. The direction of travel is upward, but the level itself does not signal extreme bearish conviction. Factor and analyst data are absent for this fund vehicle, which is expected for an ETF-style wrapper without analyst coverage or earnings events. Valuation multiples are also unavailable, reflecting the fund's pass-through structure.
What to watch: whether the short interest build continues into September and whether the tightening of availability — which compressed to as low as 26% in late July — repeats if the current short-building momentum persists.
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