Short Selling At Lowest Level Since Collapse Of Lehman

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Mark Melin
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Updated on

Short sellers are on the run, with the practice of betting against the stock market at its lowest level since before the financial crisis, according to a study published in the Financial Times. Decline in short selling due to hedge funds The decline in short selling, primarily due to hedge funds, comes as many well-known hedge funds have expressed concern regarding economic stimulus potentially building an economic foundation on sand. Recent warnings from Baupost’s Seth Klarman (although the hedge fund does not short), CQS’s Michael Hintze and David Einhorn of Greenlight Capital regarding distortions being caused by artificially low interest…

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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.