Quote:
Originally Posted by edslunch
Shorts are an important tool for managing risk but in isolation are a risk themselves. Hedge funds who are in this deep without some counter-balancing upside are just stupid and greedy and don’t deserve any sympathy. I’m always understood the right formula was a combination of options and shorts to mitigate risk in either direction while still carving out some profits, but I’ve never been a trader....
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There are lots of ways to manage the risk. And the hedge funds in question probably did - who knows, without looking at their books. Even if they didn't, they would have started doing so as soon as this started generating interest and publicity. They are professionals after all.
Regardless, hedge funds
never deserve any sympathy.