Hedge funds are loading up to bet against Lyft

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Hedge funds are loading up to bet against Lyft
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Short sellers have borrowed $455 million worth of Lyft shares, or 6.61 million shares, according to IHS Markit.

div > div.group > p:first-child"> Tuesday marks the first settlement day for Lyft shares, allowing hedge funds to begin borrowing shares to settle short sales. And they came in full force — short sellers have borrowed $455 million worth of Lyft shares, or 6.61 million shares, according to IHS Markit.

"New IPOs often attract short sellers, who seek to capitalize on falling momentum after an IPO. Timing is the key, which is why short sellers are often willing to pay extraordinary borrow fees for IPOs," said Sam Pierson, securities finance analyst at IHS Markit, in a note Wednesday.

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