Should You Short EHang Holdings Limited (EH)?

Deep Sail Capital, an investment management company, released its third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -23.3% net of fees while averaging 78% net long exposure. Weakness in micro- and small-cap equities and growth decelerations in certain positions led to the underperformance of the fund in the quarter. You can check the top 5 holdings of the fund to know its best picks in 2023.

Deep Sail Capital highlighted stocks like EHang Holdings Limited (NASDAQ:EH) in the third quarter 2023 investor letter. Headquartered in Guangzhou, China, EHang Holdings Limited (NASDAQ:EH) is an aerial vehicle technology platform company. On December 13, 2023, EHang Holdings Limited (NASDAQ:EH) stock closed at $17.37 per share. One-month return of EHang Holdings Limited (NASDAQ:EH) was 20.79%, and its shares gained 136.65% of their value over the last 52 weeks. EHang Holdings Limited (NASDAQ:EH) has a market capitalization of $1.049 billion.

Deep Sail Capital made the following comment about EHang Holdings Limited (NASDAQ:EH) in its Q3 2023 investor letter:

“Our worst-performing short position was EHang Holdings Limited (NASDAQ:EH), which saw significant upside from EVtol excitement and exhibited squeeze dynamics in the quarter. We seek to avoid these types of squeezes and are attempting to be nimbler in our short positioning at these levels.”

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EHang Holdings Limited (NASDAQ:EH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 6 hedge fund portfolios held EHang Holdings Limited (NASDAQ:EH) at the end of third quarter which was 4 in the previous quarter.

We discussed EHang Holdings Limited (NASDAQ:EH) in another article and shared the list of best TaaS stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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 Disclosure: None. This article is originally published at Insider Monkey.