Sun, Feb 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: As SEC`s comment period on short selling comes to an end, re-regulation may be necessary but over regulation is irresponsible

Wednesday, June 24, 2009

The following piece was authored by Dick Del Bello, a senior partner at Conifer Securities, LLC, a U.S.-based prime brokerage and provider of comprehensive business and operations solutions to hedge funds and investment managers.

Investors may end up holding the short end of the stick if the SEC isn't extremely careful in recommending proposed new regulations governing short sales. At stake will be the future of one of the free markets' best systems for policing and acting on corporate ineptitude.

While individual investors, be they retail, or institutional, may be hamstrung by the fortunes of an individual company in which they have invested long, the overall market is not. That is true because of the ability of investors to short a company's stock, in effect hedging their bet on a company's prospects. The decision to short may be based upon their opinion that the company's business plan, management, performance or products, warrant the stock being overvalued in comparison with its peers, or on an absolute basis.

Shorting in itself is one of the most important aspects in the business of market checks and balances that serves to keep regulatory filings honest, material disclosure complete and communications with the market above board. It is also one of the most misunderstood. The mere whiff of impropriety by the legions of cranially endowed short sellers can be a punishing tool for managements ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  2. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  3. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  4. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  5. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl