Performance

Equities- For short sellers, a moment in the sun

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It has been a long time between drinks for short sellers, but these funds could afford to buy a round for everyone in July as subprime mortgage woes spread to the equity markets.

The wave of selling sent stock indices into negative territory for the month - the S&P 500 lost 3.2% - and volatility to its highest level in four years, as measured by the Chicago Board Options Exchange's VIX index.

As a result, short sellers of U.S. equities such as Copper River Partners and Ursa's Offshore fund outperformed in July after a difficult four years for the