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Betting against a team is different from trying to rig the game. An unfortunate side effect is that it incentives hedge funds to discredit legitimate companies.
by andrewtbham 8y ago
Betting against a team is different from trying to rig the game. An unfortunate side effect is that it incentives hedge funds to discredit legitimate companies.
- aaavl2821 8y agothat goes both ways though, hedge funds talk their book on the long and short side The difference is that it is generally much easier to make money on the long rather than short side. Stocks generally tend to rise in value, which acts to passively eat away at the returns to shorting. And with shorting you have unlimited downside while your loss is capped with a long position So if you are shorting you are fighting gravity and have to sometimes be more vocal to compensate for that. If it were easier to short stocks, maybe people could make money without being as vocally critical
- andrewtbham 8y agoMost hedge funds don't pump up their long positions... I'm not sure why, but they just don't. Also if you buy puts you can limit your down side.