Five interesting things that Hodges Capital research analysts discovered this week...

#1 WORKING FROM HOME: A recent survey conducted by Stanford University indicates that work-from-home levels have stabilized since 2023. English-speaking countries report the highest average levels of remote work, at approximately 1.5 to 2 days per week. In the U.S., the average college-educated worker works from home 1.6 days per week, while Canada reports the highest average at 1.9 days per week.

#2 SHORT SELLING: According to research conducted by Stephens, short interest in the investable market (Russell 3000 Index) stood at 2% as of April 15, 2025, consistent with levels reported on March 31, 2025. Short interest remained at 1.8% in the large-cap market, while rising 10 basis points to 6.2% in the SMID-cap market. Energy continues to be the most heavily shorted large-cap sector, while health care remains the most shorted sector among SMID-cap stocks.

#3 VOLATILITY: VIX is the ticker symbol and popular name for the CBOE Volatility Index—a widely followed measure of the stock market’s expectations for volatility, based on S&P 500 index options. The VIX surged to 60 following tariff announcements by former President Trump in early April, before retracing to 30. Even after halving from its peak, a VIX reading of 30 signals elevated levels of uncertainty by historical standards. According to Strategas, the VIX's lifetime average is approximately 19.60, meaning the current level is still about 53% above the historical norm dating back to its inception in 1990. Strategas notes that volatility, as reflected in option prices, offers insight into future market expectations—a 30 VIX suggests an anticipated one standard deviation move of ±30% for the S&P 500 over the next year.

#4 REPOSITIONING: According to The Harvard Crimson, the Harvard Management Company plans to sell nearly $1 billion of private equity fund investments, liquidating almost 5% of its portfolio. Private equity remains a central pillar of HMC’s investment strategy, comprising nearly 40% of its $53 billion endowment.

#5 POSITIONING: According to the Economic Times, billionaire investor Warren Buffett’s Berkshire Hathaway has accumulated $300.87 billion in U.S. Treasury bills, representing nearly 5% of the entire market for short-term government debt.

 HCM is an Investment Advisory Firm registered with the Securities and Exchange Commission (“SEC”), is a wholly owned subsidiary of Hodges Capital Holdings and serves as investment advisor to the Hodges Funds. HCM is affiliated with First Dallas Securities, Inc, a broker-dealer, and investment advisor registered with the SEC.

This discussion is not intended to be a forecast of future events and should not be considered a recommendation to buy or sell any security. Past performance is not indicative of future results. Investing involves risk. Principal loss is possible. Investing in smaller companies involves additional risks such as limited liquidity and greater volatility. No current or prospective client should assume that information referenced in this communication is a recommendation to buy or sell any security or is a substitute for personalized investment advice from your individual advisor. HCM does not provide tax or legal advice. Consult your tax or legal advisor for any related questions.

All information referenced herein is from sources believed to be reliable and is provided as general market commentary and does not constitute investment advice. This material was created for informational purposes only and the opinions expressed are solely those of HCM. HCM shall not in any way be liable for claims and makes no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information. The data and information are provided as of the date referenced and are subject to change without notice.