Hello, volatility! In late February, as the stock market
went into freefall, leaving television pundits stammering into
the cameras, hedge funds with quality short positions profited
handsomely. On a single day that month, February 27, the
S&P 500 dropped 3.47%, taking away some gravy from long
positions. But that same move aided many short positions,
especially those in subprime lenders.
Even as the U.S. equity markets suffered - with the S&P
500 plunging 2.19%...