EIS, the iShares MSCI Israel ETF, enters the week with a modest repositioning underway — shorts that had been unwinding since late April made a small comeback on Tuesday, even as the ETF slipped 4% from last week's levels.
The short-interest retreat documented in last week's note has stalled. After falling steadily from a peak near 353,000 estimated short shares in late April, SI jumped 12% in a single session on May 19 to 252,576 shares, or roughly 5.1% of free float. That one-day move partially reverses a week that had otherwise continued the unwind trend — SI was still down about 3.5% on a seven-day basis and down 24% over the past month. The short score has been oscillating in a narrow band between 42 and 46, ending the week at 43.5. That's a mid-range reading — not a crowded short, but not a clean all-clear either.
The borrow market has loosened considerably since the April stress peak, though this week brought a small tightening. Cost to borrow ended at 1.23% annualised, having dipped to 0.63% as recently as May 15 before rebounding. Availability is ample at 381% of short interest — meaning roughly four shares remain available to borrow for every one currently lent out — though that figure has tightened from above 600% earlier in the week. The 52-week low in availability was 56.9%, which gives important context: current conditions remain far from any meaningful borrow squeeze.
The ownership picture adds an interesting dimension. Jane Street holds the largest reported position at 19.5% of shares, followed by Korea Investment Corporation at 18.6% — both reported as of March 31. BlackRock entered with a fresh position of 179,039 shares in the same quarter. The concentration in a handful of institutional hands means flow dynamics can be lumpy, and the 26.6% utilisation level tells the same story as availability: the lending pool is nowhere near stressed.
What to watch is whether the May 19 one-day SI jump is a one-off or the start of a renewed build. The ETF's 4% weekly decline to $129.35 — giving back some of the gains that accompanied the April short unwind — is the backdrop that will determine whether that Tuesday positioning move attracts followers or fades out.
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