A temporary ban on some short sales - and another reversal
of the long commodity/short financial trade - strips equity
funds of their luster By Pete Gallo If October hadn't been so
brutal, the month of September could have well gone down as the
worst month in the history of long/short equity strategies.
During that 30-day period, Lehman Brothers failed, credit
markets froze, the U.S. Securities and Exchange Commission
temporarily banned funds from taking on additional short
positions on financial stocks - and the popular long
commodity/short financial trade inverted, only to reverse
"For the hedge fund industry, September and early October was
a period of almost unprecedented risk, given the broad scope
and speed of the equity market's decline across all sectors,
not to mention the scale of the underlying problem - a credit
cloud big enough to potentially bankrupt economies the size of
Belgium," says John Trammell, president of...