A Little Up, a Little Down: Firms Struggle with Shorts

For many hedge funds, shorting is an appealing hedge against a long book. But the record is mixed, particularly in bullish markets.


Daniel Loeb’s Third Point told clients in the hedge fund firm’s first-quarter report that shorts have become a much bigger part of its multistrategy portfolio. “We have invested in more single name shorts this year than in all of 2014 combined,” the firm said.

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