“Stocks that are 80 or 90 per cent down, they can get just a little bit of good news and then double,” Plato’s David Allen warns hedge fund hopefuls.
Shorting stocks is not for the faint-hearted.
The practice, which is deployed by hedge funds to profit from falling share prices, is equally maligned and obsessed over. And short sellers are inherently losers in a market that tends to head up, rather than down.
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Original URL: https://www.afr.com/markets/equity-markets/a-hedge-fund-manager-s-four-tips-for-avoiding-death-by-shorting-20241031-p5kmxk