Western Asset Mortgage Opportunity Fund Inc. (NYSE: DMO) experienced a significant increase in short interest during October, with a rise of 47.9% reported as of October 15, 2023. The total short interest reached 31,200 shares, up from 21,100 shares on September 30, 2023. This surge indicates a growing sentiment among investors regarding the fund’s stock performance.
Trading Volume and Short-Interest Ratio
Based on an average daily trading volume of 53,500 shares, the short-interest ratio is currently at 0.6 days. This metric suggests that, at the current trading pace, it would take less than a day for all shorted shares to be covered. The stock’s recent trading activity reflects a complex interplay between short-selling and overall market sentiment.
Institutional Investors Adjust Positions
Changes in institutional investment positions have also been notable. Bank of America Corp DE increased its stake in Western Asset Mortgage Opportunity Fund by 18.6% during the second quarter, bringing its total holdings to 15,490 shares, valued at approximately $185,000. This increase involved the purchase of an additional 2,424 shares.
In the first quarter, Virtu Financial LLC established a new position in the fund valued at $205,000. Similarly, Integrated Capital Management Inc. raised its holdings by 5.5% in the second quarter, now owning 17,244 shares worth about $206,000. Another notable adjustment came from Walleye Capital LLC, which boosted its position by an impressive 80.5% in the first quarter, acquiring an additional 8,054 shares for a total of 18,064 shares valued at $214,000.
Additionally, Aviance Capital Partners LLC increased its stake by 26.0% during the same period, now holding 32,343 shares worth approximately $382,000.
Current Stock Performance
On Tuesday, Western Asset Mortgage Opportunity Fund’s stock saw a slight decline of 0.3%, trading down $0.04 to reach $11.95 per share. The trading volume at that time was 22,123 shares, which is below its average volume of 56,829 shares. The fund’s performance remains within the range of its 52-week low of $10.81 and high of $12.32, indicating a volatile market presence.
About Western Asset Mortgage Opportunity Fund
Western Asset Mortgage Opportunity Fund Inc. is a closed-end fixed income mutual fund, managed by Legg Mason Partners Fund Advisor, LLC, in conjunction with Western Asset Management Company and Western Asset Management Company Limited. The fund primarily invests in the fixed income markets within the United States, aiming to provide attractive returns for its investors.
The increase in short interest, alongside notable institutional investment shifts, suggests that market participants are closely monitoring the fund’s performance. Investors are encouraged to stay informed on further developments and market analyses.
