As European stocks have rocketed higher over the past four months an odd anomaly is occurring: key European short positions held by hedge funds are outperforming the longs. 2014 very different market environment for short sellers than 2013 After a “frustrating” 2013, when “bad stocks were lifted in a good market,” said Stanley Altshuller Co-Founder and Chief Research Officer at Novus, a research firm that monitors hedge fund short positions in Europe. The difference now is that “the market is behaving like a stock pickers market in contrast to 2013 which was a general melt-up. Now bad companies are under…
European Hedge Fund Shorts Outperform Rising Stock Market
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.