RE: Hedge fund short sellers burnt by flurry of UK takeover bids6 Jun 2024 15:05
1pencil - I agree with the sentiment, but what a lot of people don't take into account when talking about "Hedge fund short sellers" is that just because they show up on the "Short Positions" list, does not necessarily mean they are Net Short.
Often they play both sides building "Long/Short Portfolios" of various different combinations and ratios, hence the term "Hedge Fund". Sometimes they build a Long/Short Position in a sector, whereby they will short the weakest company in that group and go long the strongest, if the group as a whole goes up - the strongest stock should have a higher 'beta' and the weakest stock a much lower 'beta'... and vice versa (win|win).
Just my 2 pennies worth and something for folks to consider. GLA