Short interest in the RiverFront Strategic Income Fund (NYSEARCA:RIGS) experienced a striking increase of 467.6% in December 2023. As of December 15, the total short interest reached 4,393 shares, a significant jump from the 774 shares reported on November 30. This surge represents approximately 0.1% of the fund’s total stock, indicating a notable shift in investor sentiment.
The short-interest ratio, based on an average daily trading volume of 16,991 shares, currently stands at 0.3 days. This measure suggests that, at the current volume, it would take less than a day to cover all short positions. Such a rapid increase in short interest often reflects growing bearish sentiment among investors.
Institutional Stake Increases
In addition to the rise in short interest, there has been a noteworthy change in institutional ownership of the fund. Janney Montgomery Scott LLC increased its stake in the RiverFront Strategic Income Fund by 7.0% during the second quarter of 2023. According to the firm’s latest 13F filing with the U.S. Securities and Exchange Commission, Janney Montgomery Scott now holds 44,615 shares of RIGS, having purchased an additional 2,912 shares during the quarter. This investment is valued at approximately $1,038,000, making up about 1.12% of the fund.
Current Share Performance
On the trading front, shares of RIGS opened at $23.06 on the most recent trading day. The fund’s 50-day moving average is $23.17, while the 200-day moving average stands at $23.15. Over the past year, the fund has experienced significant price fluctuations, with a 52-week low of $21.24 and a 52-week high of $24.32.
The RiverFront Strategic Income Fund is an exchange-traded fund designed to provide investors with exposure to a broad range of fixed-income securities. Launched on October 9, 2013, RIGS is actively managed and invests in various types of fixed-income assets without currency limitations. This diverse approach aims to enhance returns while managing risk in a dynamic financial environment.
As the landscape for fixed-income investments evolves, the sharp increase in short interest and institutional investment reflects a complex interplay of market dynamics that investors will continue to monitor closely.
