Avis’s 200% Surge Lures New Shorts Eyeing Trip ‘Back to Reality’

A three-fold surge in the shares of car rental company Avis Budget Group in just two weeks has punished short investors betting against the stock. But the bears are not giving up; if anything, they are doubling down.

Short interest in the company as a percentage of its free float is currently at 58%, the highest in the last 10 years, according to S3 Partners data. Bearish wagers in the stock have steadily climbed even as a more than 200% spike in Avis shares in just 10 trading sessions through Tuesday squeezed those betting on a drop. Short investors clocked in nearly $2.5 billion in mark-to-market losses over that period.