The short interest in the RiverFront Strategic Income Fund (NYSEARCA:RIGS) experienced a remarkable increase of 467.6% in December 2023. As of December 15, the total short interest rose to 4,393 shares, up from just 774 shares reported on November 30. This surge indicates that approximately 0.1% of the company’s stock is currently sold short, reflecting a notable shift in investor sentiment.
The short-interest ratio for RiverFront stands at 0.3 days, calculated based on an average daily trading volume of 16,991 shares. This figure suggests that the short positions could be covered quickly, indicating a potential volatility in the stock’s price.
Institutional Investments Reflect Growing Confidence
In addition to the increase in short interest, institutional investment activity has also shifted. Janney Montgomery Scott LLC recently raised its stake in the RiverFront Strategic Income Fund by 7.0% during the second quarter of 2023. According to the hedge fund’s latest 13F filing with the U.S. Securities and Exchange Commission (SEC), the firm now holds 44,615 shares after acquiring an additional 2,912 shares during the quarter. This investment represents approximately 1.12% of the fund, valued at around $1,038,000.
Current Stock Performance
On December 15, shares of RIGS opened at $23.06, reflecting a decline of 0.9% on the day. The stock has shown a modest range over the past year, with a 52-week low of $21.24 and a high of $24.32. The 50-day moving average stands at $23.17, while the 200-day moving average is slightly lower at $23.15, indicating a relatively stable performance in recent months.
The RiverFront Strategic Income Fund, which focuses on broad credit fixed income, was launched on October 9, 2013. The fund is known for its actively managed global fixed-income portfolio, investing across various types of fixed-income securities without currency limitations.
As investor interest and institutional stakes evolve, stakeholders will be closely monitoring future developments surrounding RIGS and its implications in the fixed income market.
