Performance by Short Interest Decile: Not What You'd Expect [View article]
"This is interesting given the fact that markets are down so much in 2008. One would think that short investors would be doing well in this type of market, but the numbers below indicate otherwise."
How so? Shorts are UP, regardless of decile. Longs are down regardless of decile.
"Could this be due to buy-side firms being forced to liquidate positions, thus pushing highly shorted stocks higher because the positions have to be bought. "
Is that a question? If so, you missed the question mark. And of course in a market that is DUMPING, people on margin are going to be buying back their shorts and selling their longs, making the good stuff go down and the bad stuff go up (or down less in this case).
Performance by Short Interest Decile: Not What You'd Expect [View article]
How so? Shorts are UP, regardless of decile. Longs are down regardless of decile.
"Could this be due to buy-side firms being forced to liquidate positions, thus pushing highly shorted stocks higher because the positions have to be bought. "
Is that a question? If so, you missed the question mark. And of course in a market that is DUMPING, people on margin are going to be buying back their shorts and selling their longs, making the good stuff go down and the bad stuff go up (or down less in this case).