Until recently many long/short funds performed well with a consistently long bias, but the environment has changed. The breakdown in quant models and many traditional relationships has called into question the value of pairs trades and index futures positions.
The key skill for short positions is developing a trading strategy to address the main risk. Shorts can suffer sharp adverse price moves, as an unexpected event triggers a scramble to close a crowded trade. In running a short position, mana
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- ABS set for revival under US Treasury’s liquidity buffer plans
- Deutsche Bank expects early 2018 decision on LCH exit
- Industry hails potential US relaxation of margin timing rules
- Leaked EU doc could shield legacy swaps from clearing grab