zerohedge.com / by Tyler Durden / 02/24/2014 12:27 -0500
As
we have repeatedly pointed out, the one surest way to generate profits
in these manipulated, broken markets is to take advantage of the one
legacy trade that makes zero sense in a world in which the global
central banks are the ultimate providers of downside risk protection:
i.e., going long the most shorted names. We did just this most recently past Friday, when we listed the latest hedge fund long hotel, as well as the names most shorted by the “sophisticated” investors, saying “anyone going long these names is virtually assured to outperform the market over the next year.”
One day later and this “strategy” is already generating outsized alpha,
with the most shorted names solidly outperforming the market.
And as the case may, this latest bout of “most shorted” outperformance is set to continue for one main reason.As the CFTC reported last friday, institutional investors using Standard & Poor’s 500 Index futures turned bearish this month for the first time since September 2012.
READ MORE
As
we have repeatedly pointed out, the one surest way to generate profits
in these manipulated, broken markets is to take advantage of the one
legacy trade that makes zero sense in a world in which the global
central banks are the ultimate providers of downside risk protection:
i.e., going long the most shorted names. We did just this most recently past Friday, when we listed the latest hedge fund long hotel, as well as the names most shorted by the “sophisticated” investors, saying “anyone going long these names is virtually assured to outperform the market over the next year.”
One day later and this “strategy” is already generating outsized alpha,
with the most shorted names solidly outperforming the market.And as the case may, this latest bout of “most shorted” outperformance is set to continue for one main reason.As the CFTC reported last friday, institutional investors using Standard & Poor’s 500 Index futures turned bearish this month for the first time since September 2012.
READ MORE
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