Short Interest in First Trust Multi-Strategy Alternative ETF Drops 41.9%

The short interest in the First Trust Multi-Strategy Alternative ETF (NYSEARCA:LALT) has experienced a notable decrease of 41.9% as of December 15, 2023. The total short interest fell to 27,546 shares, down from 47,373 shares recorded on November 30, 2023. This change indicates that approximately 2.3% of the ETF’s shares are currently sold short.

The decline in short interest reflects a shift in investor sentiment. With an average trading volume of 13,635 shares, the days-to-cover ratio stands at 2.0 days, suggesting that it would take this amount of time for short sellers to cover their positions if they chose to do so.

In trading on Friday, the First Trust Multi-Strategy Alternative ETF saw a modest increase, rising by $0.06 to reach a price of $22.92. During the session, 1,587 shares exchanged hands, which is below its average volume of 8,110 shares. Over the past year, the ETF has fluctuated between a low of $19.96 and a high of $23.31. The current 50-day moving average is noted at $22.97, while the 200-day moving average is at $22.30.

Investors and analysts continue to monitor the performance of the First Trust Multi-Strategy Alternative ETF as it adapts to market conditions. The recent decline in short interest may indicate a more favorable outlook among investors regarding the ETF’s future performance.

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