Hulbert: Study Shows Rise in Short-Selling a Bearish Sign

A study recently published in the Journal of Financial Economics found that short sellers “on balance are right more than they’re wrong” writes Mark Hulbert for MarketWatch, arguing “it’s worrisome that the volume of short selling has risen so steadily this year.” According to University of Utah finance professor Matthew Ringgenberg, the reason that short sellers tend to do better is that it’s more challenging to sell a stock short than to buy it—that is, says Ringgenberg, “the markets place a number of hurdles in front of the short seller that don’t exist for investors on the long side” (i.e. […]

The Short Side of Activist Investing

A recent Bloomberg Gadfly piece observes that “investors who make bearish bets on stocks and then lay out their case publicly” have delivered a “performance as a whole [that] is not all that great in the short term – or in recent years either, at least as far as market-beating returns are concerned.” Along with a number of specific anecdotes, the article highlights data from Activist Shorts Research that shows a declining impact to the public announcements of activist bearish short investors and funds. “So far this year, stocks that have been targeted by shorts have fallen an average of […]