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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?


To: rrufff who wrote (150)4/7/2005 2:10:46 PM
From: tyc:>  Read Replies (1) | Respond to of 5034
 
Hedge fund shorting per se is not a bearish strategy. It is not intended to drive the stock price down, nor even to profit from an anticipated fall in the stock price. Hedging implies minimising losses, or better still, guaranteeing profits. Indeed that's what distinguishes hedge funds from other funds. Their aim is to assure a profit, rather than to beat the market.

If this fairly states the purpose of "hedge fund" shorting, it is easy to see that hedge shorting is appropriate to major financial institutions generally. Their aim is consistent profits, not the volatile returns of bulls and bears.