RE: Shorts6 Oct 2025 09:47
Hi Dip, I agree with that.
One strategy I've read about is for the hedge fund to take a group of stocks in the same sector ( a sector they expect to do well ) and invest in them - however they pick what they perceive as the weakest in the group and short it. Thus if they are correct and the sector strengthens then they do well on all but one share, and if the sector does badly then they are banking on the 'worst' of the sector falling the most, thus recovering as much as possible.