Reuters – Hedge funds, whose huge stock bets can cause big market swings, are feared and reviled by many corporations that prefer more control over their fortunes.
But companies willing to open their doors to hedge fund scrutiny could gain a fresh perspective, or even a supporter.
“It’s important to hear the bear case on your stock,” said Jessica Dickerman, an analyst with the $1 billion Harvest Management LLC hedge fund. “Often hedge funds do change their longs to shorts and shorts to longs.”
Hedge funds are private pools of capital that aim to achieve “market neutral” returns which not dictated by the general direction of the market. Typically, the funds balance “long” positions in stocks expected to rise with “short” positions in stocks expected to drop.
