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Hedge funds capitulate, with data suggesting they are covering shorts on European stocks at the...
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Monday, August 13, 2012, 11:50 AM ETHedge funds capitulate, with data suggesting they are covering shorts on European stocks at the fastest rate since the epic bottom of early 2009. Likely priced in on the bear side are faltering economies and shrinking corporate profits. Maybe priced in on the bull side are further supportive official actions.
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This news story has 3 comments:
I just think that the destruction of the shorts is going to lead to even greater instability in the long run and the potential for sharp crash without the support from shorts covering their positions on the downside.
Add in short-selling bans and you really have to wonder about the basic premise of running a long/short fund. The only rationale is really the fees because the clients sure aren't benefiting from it.
They have stopped shorting in Europe, so I wonder what TPTB will do for us here when the fan gets hit.
Capt. Brian
The Lost Navigator