Fintuition - Course Overview

Short Selling

Fee: £995 + VAT

Berkeley Square House, Mayfair - London

Short-sellers are often regarded as sophisticated market participants, but they are also vulnerable to a series of unusual risks. In this course, we will explore how short-sellers behave in practice, how they manage the risks they face and how they gain valuable new ideas and warning signs from stock lending data.


28 - 28 September 2010	TBC, Central London

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Course Director(s)
James Clunie

Guest Speaker(s)
None required

What You Will Learn

Is This Course Right For You?

We will examine the evidence behind a variety of short-selling strategies and what can go wrong and why. Course participants should expect to learn about short-selling from a variety of perspectives: from the theoretical foundations through to the empirical evidence and on to recent case studies in short-selling. Participants should also emerge with a strong understanding of how to mitigate the risks they face as short-sellers and how to identify new short-sale candidates.

Course Overview

SHORT-SELLING OVERVIEW
The motivation for short-selling
Mechanics of the process
Barriers to short-selling
The use of derivatives as alternatives to short-sales
How regulators deal with short-selling

HOW DO SHORT-SELLERS BEHAVE?
Evidence on the behavior of short-sellers: the characteristics of securities they target and when they trade.

PORTFOLIO STRATEGIES
Short-extension funds
Absolute return funds
Flexible and defensive funds
Directional short-selling
Client issues
Fund structures

RISKS FOR SHORT-SELLERS
Short-sellers face a series of unusual risks not faced by long-investors:
Evaluate recall risk
Crowded exits
Manipulative short-squeezes and changes to collateral requirement
Synchronization risk
Agency problems

MANAGING THE RISKS
How short-sellers can mitigate these risks.

THE IMPORTANCE OF DATA ON SHORT-SALES AND STOCK LOANS
Stock lending and short-selling data has informational value, helping to predict stock returns and identify risks.

IDENTIFYING CANDIDATES FOR SHORT-SELLING
Where do short-sellers get their information? Quantitative and qualitative approaches for generating trading ideas. Predatory trading approaches.

THE FUTURE OF SHORT-SELLING
New types of short-seller and how their behavior can change the market dynamics. The response from long-investors and regulators.

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