Shorting. What Is It Good For?

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Rupert Hargreaves
Published on
Updated on

The following is a guest post from Eric Fernandez, CFA of Two Rivers Analytics. The S&P is at record highs yet again. Shorting has been difficult for the past several years as equities have continued their ascent.  More than a handful of well-regarded short-biased funds have closed their doors since 2014.  You could be forgiven for asking what shorting is good for. Don’t short-change shorting The top three reasons institutions invest in hedge funds, according to Prequin’s Global Hedge Fund Report, are: to seek uncorrelated returns (59%); to seek higher risk-adjusted returns (56%); and to reduce portfolio volatility (46%). Surprisingly, just seven...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk