The $1m book example makes the point clearly: with the index down 15% and the holdings down 8%, the short more than offsets the share loss, so stock selection still pays. The caveat about sizing to the book's sensitivity to the index, especially with concentrated speculative software names, is what makes the hedge harder in practice.
The $1m book example makes the point clearly: with the index down 15% and the holdings down 8%, the short more than offsets the share loss, so stock selection still pays. The caveat about sizing to the book's sensitivity to the index, especially with concentrated speculative software names, is what makes the hedge harder in practice.
Anyone else not able to read the piece?
I am not entirely sure what has happened... Try refreshing it. When I clicked on it after posting it - it was blank.