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that 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
by aaavl2821 8y ago
that 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.