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When the Glass is Half Empty – The Long and Short of Short Selling

The prospect of protecting capital and potentially earning positive returns during negative equity markets attracts many to long-short equity investing. But how do long-short equity funds make money in down markets? One way is through the use of «short selling,» or investing capital in the expectation of a decline in share price using borrowed shares or derivatives. Despite its importance, the practice of short selling receives only limited coverage, and considerably less attention than the long side of the industry. In this article, we provide short selling its due as we review its role within long-short equity funds and describe several of the more common short selling approaches. ?

16:39 - 26 Οκτωβριου 2015

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