Long/short return calculations can ignore effect of leverage

Net exposure should be smaller than long exposure, not larger, says academic

long-short

"All that is gold does not glitter; all that is long does not last" - JRR Tolkien's first draft of the poem All that is Gold Does Not Glitter found in The Fellowship of the Ring. Was he advocating short sales?

 

Remember the 130/30 fund? Or the short-lived – no pun intended – dedicated short-bias fund? What has become of the short side? Some such funds are still around, of course. But headlines over the past few years read like short-side obituaries: "Death of the Hedge Fund Short Seller" (For