Short sellers are increasing their positions against Blue Owl Capital, with short interest in the firm’s shares reaching record levels as investor concerns around the private credit market intensify, according to a report by Bloomberg.
The proportion of Blue Owl’s free float held short rose to 14.65% this week, according to estimates from S3 Partners, surpassing the previous record of 14.3% set in December. Separate data from S&P Global Market Intelligence put short interest at 17.9% of the company’s free float as of Tuesday’s close, up from 14.9% a week earlier.
Borrow demand for Blue Owl shares has also accelerated. Data from EquiLend showed the stock was the most borrowed among US equities on Wednesday, with more than 19 million shares on loan as of mid-afternoon in New York.
Blue Owl shares rose as much as 2.6% on Wednesday as broader markets advanced, following what was the firm’s steepest monthly decline on record in February. The company has reportedly previously highlighted the low default rates across its private debt strategies and said it expects credit conditions to remain stable.
