In Volatile Markets, Success Can Flip from Longs to Shorts

Firms with long-short funds can calibrate strategies to exploit shifting markets. That’s great, as Greenlight Capital found, if they guess right.

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David Einhorn, Greenlight Capital (Bloomberg)

With stocks tumbling since the beginning of the year and with many of the technology and health care stocks popular among the long-short set taking the biggest beatings, many long-short funds will be heavily relying on their shorts to mitigate losses and maybe even produce net gains over this volatile period.

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