Long / Short Managers Focus On Short Side At Morningstar Conference

With equity market valuations at relatively high levels, long / short strategies are increasingly finding opportunity on the short side of the market, a panel of portfolio managers noted at the Morningstar Investment Conference in Chicago. The panel participants from Boston Partners, Diamond Hill and PIMCO – all managers who beat their long term category benchmark while delivering lower volatility than the S&P 500 – differed slightly in their approach to shorting and the role macro market analysis played in such decisions. They all agreed on the need for investors understanding the costs of short exposure, particularly during the...