Performance

Rising equity piles on the pain for the bears

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An October surge in U.S. equity markets ensured a miserable month for short-sellers who found few places to hide. Dedicated short-biased funds, on the whole, lost more than 7% in October, leaving many with a cumulative performance of -25% or worse for the year. October's short-selling carnage was largely the result of previously beat-up names going ballistic, running well ahead of indices that jumped by as much as 10%. Any such battered name with open interest created self-fulfilling prophesies, catching shorters off guard as they surged.

Kodiak Capital in October took its biggest monthly hit so far this year.