What are short selling hedge funds?
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They are market participants that keep over zealous buyers in touch with reality.
Dude, not to sound like a douche but there is no need to start a topic like this. Try Google first, there's tons of good reference sites.
http://lmgtfy.com/?q=short+selling
Short selling is "borrowing" a share from your broker and then later "selling" it capturing profit if the price drops. Limited upside and unlimited downside. Short selling hedge fund pick losers instead of winners.
There aren't many short biased HFs. Of course one of the best ones is Jim Chanos' Kynikos Associates.
It's tough being short only because of unlimited risk to the upside, interest cost of borrowing shares, danger of broker's asking back for borrowed shares, etc. Markets are also biased to slowly drift upwards (equities as inflation hedge, economic growth, etc.). So you're usually losing money being short only. On the bright side when companies get in trouble share prices tumble very quickly and wipe out years of gains in matters of days/weak = market timing is very important in short selling... but it's difficult to do.
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