Politics & Regulation

Shorts get hung out to dry

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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