These Shorts Aren't Laughing Now

Rising stocks are pummeling short-sellers such as the Feshbachs

Joseph Feshbach, short-seller extraordinaire, is unbowed--but bloodied. In just the past seven months, as the Dow Jones industrial average has flirted with 3000, the $1 billion partnership run by Feshbach and his brothers has dwindled to $500 million. The brothers have even put up for sale their Challenger 601 jet, which they bought for $10.8 million only last year. Still, the Palo Alto (Calif.) brothers are hanging tough. Says Joe: "The market hasn't changed so significantly that we don't have a chance of getting back on a winning path."

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