IFAs in need of short-selling education - SWIP

The firm says investors are coming to believe a ‘shorting’ constraint in portfolio management is preventing them from fully exploiting their ability to forecast stock returns. Short-selling is a way to benefit from a decline in the price of a security. Proof of its potential occurred this year when shares in Northern Rock bank fell £10 in value between February and September. It has been estimated short-sellers made over £1bn during this period. James Clunie, SWIP investment director, UK Equities, says: “It is encouraging to see consistently increasing interest and enthusiasm for short-se...