UBS’s Asia Hedge Fund Clients Raise Short Bets by 30% This Year
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UBS AG’s hedge fund clients in Asia have increased short bets on stocks three times as fast as their long holdings this year amid conflicting views about the global economic recovery.
Outstanding stock shorts of local and global hedge funds trading in Asia have grown by 30 percent in 2010 and their long holdings have expanded by about 10 percent, said Lynden Howie, the largest Swiss bank’s head of equity finance in the region. Shorting involves borrowing and selling stocks in the expectation of buying them back later at lower prices.