Short Sellers Fail To Capitalize On Market Swoon

Feb 13 2014 | 11:51am ET

January's market tumble didn't translate into big profits for many short-selling hedge funds.

Short-biased firms were battered last year, as the Standard & Poor's 500 Index soared 32%. The same benchmark underwent something of a correction last month, dropping 3.6%—but short-sellers failed to capitalize, rising just 0.88% in January, according to eVestment.

Kynikos Associates, perhaps the most prominent short-selling hedge fund, did post a respectable gain, with its short-only Ursus fund rising 3.85%, CNBC reports. That fund shed 35.9% last year.

Several small short-sellers also made something of last month's opportunities. Gracian Capital rose more than 3% in January—but was just barely net short—and SC Management rose 2.1%. Those funds fell about 25% and 29%, respectively, last year.

Gotham Capital's Short Strategies Fund was among the month's losers, dropping 2%. Kingsford Capital Management shed 1.2%.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.