Managing a Portfolio by Shorting Identify Benchmarks before Shorting

Minimizing Risks by Short Selling

An important way we try to minimize risk is by actively deploying short sales. We don’t do it primarily for that reason – we do it to generate incremental profits – but the outcome of shorting is that in periods of declining market prices it does tend to preserve the gains or trump the losses we have on the long side of the book.
Tags: shorting, risk, sales