The Benefits of Long Short Investments

Many of our clients would be much more comfortable on a fee with long only, but profiting when companies come off. When we go short, we borrow some shares from an existing shareholder and we pay them a small rate of interest for the right to borrow their shares. That allows us to sell them in the stock market and then at some future dating time and hopefully the share price is lower, we can buy those shares back and repay the loan.