The short interest in the First Trust Latin America AlphaDEX Fund (NASDAQ: FLN) surged by 39.8% during January, marking a notable shift in market sentiment. As of January 30, 2023, the total short interest reached 48,228 shares, significantly up from the 34,499 shares reported on January 15, 2023. This increase represents 5.1% of the total shares available for trading.
With an average daily trading volume of 21,676 shares, the short-interest ratio currently stands at 2.2 days. This indicates a heightened level of investor activity, reflecting a cautious outlook on the fund’s performance.
Market Performance and Trading Activity
On January 31, 2023, shares of the First Trust Latin America AlphaDEX Fund traded down by 0.6%, closing at $26.43. A total of 1,925 shares changed hands during the session, which is below its average trading volume of 20,206 shares. The fund has a market capitalization of $25.10 million and boasts a price-to-earnings (P/E) ratio of 9.93. Its beta is recorded at 0.91, suggesting lower volatility compared to the broader market.
The fund has experienced a range within the last year, with a low of $15.75 and a high of $28.50. Investors are keeping a close watch on these fluctuations, particularly in light of the recent increase in short interest.
Dividend Announcement and Hedge Fund Interest
In addition to the changes in short interest, the First Trust Latin America AlphaDEX Fund recently announced a quarterly dividend of $0.3093, which was paid on December 31, 2022. Shareholders of record on December 12, 2022, received this dividend, representing an annualized yield of 4.7%. This figure marks a significant increase from the previous quarterly dividend of $0.09.
The fund, which was launched on April 18, 2011, is designed to track the NASDAQ AlphaDEX Latin America index. It utilizes a proprietary methodology to screen various Latin American firms based on multiple factors, ensuring a diversified investment approach. Managed by First Trust, the fund continues to attract attention from both retail and institutional investors, including hedge funds.
As market conditions evolve, the First Trust Latin America AlphaDEX Fund remains a focal point for investors looking for exposure to the Latin American market. The significant rise in short interest may indicate shifting perceptions among market participants, prompting ongoing scrutiny of the fund’s future performance.
