Be Careful What You Short

Shorting on valuation alone is a risky business. Nine times out of ten, the analysis is sound, it’s clear the company in question is overvalued and should be due for a re-rating. However, it’s often difficult to maintain the short position for the required period as there’s no telling how long market exuberance can last. How successful are short selling campaigns? A recent article by Alon Bochman of investment firm, Stepwise Capital provides a real insight into how successful different types of short selling campaigns are. The article looked at the different performance of shorts based on valuation, compared to…