Short-Selling Momentum

April 20, 2009   Frances Denmark


Pessimism rises in February, creating short-selling momentum.

Pessimism was on the march in February, creating short-selling momentum, as many long-short equity funds increased their net short positions amid the escalating negative market sentiment. Dedicated short-sellers faced a tougher task, as many long-short managers, most of them net long, piled into many of their trades. But who can blame them? The fund-weighted composite index compiled by Hedge Fund Research in Chicago was down 1.18 percent for the month and...

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