Hedge funds are betting on the decline of some of the hottest sectors in the market, including electric cars, luxury goods, and artificial intelligence. Data compiled by Hazeltree, which provides financial services to institutions such as hedge funds, shows that Tesla, Gucci-owner Kering, and Japanese chipmaker Advantest were among the most targeted stocks for short-selling by hedge funds last month.

The crowdedness of short-selling trades was measured on a scale of 1-99, with Tesla, Kering, and Advantest all scoring 99. While these stocks were heavily shorted, the proportion of shares lent out by institutional investors was relatively low. Title: Hedge Funds Targeting Tesla and Kering in Hot Sectors Short-Selling Trend.