Shot Selling Ban & Hedge Funds | A Disruption of Free Markets

Short Selling Ban

Short Selling Ban on Hedge Funds

Here is a recent article on the short selling ban and hedge fund managers - how it is affecting them. On the phone with a fund of hedge fund and a long/short group over the weekend I have heard them express the pains of their clients adjusting models, investment processes and research. Here's the article:
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The short selling ban has boosted shares of many financial companies, but it's roiling the $2 trillion hedge fund industry. That's because managers have been left with limited access to one of their most important investment tools. Short sellers, who specialize in betting against shares, along with convertible arbitrage funds and so-called relative value managers have been among the hardest hit, investors said this week.

"If this goes on longer, it will become much more problematic," Bill Ferrell, head of hedge fund investment firm Ferrell Capital Management, said in an interview. "Whenever government intervenes in a free market, you're playing with fire." Source.

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