As Keith McCullough wrote in today’s Early Look, he doesn’t short stocks because he’s evil. He does it to protect and grow his hard-earned capital.
That’s one of the many differences between Hedgeye’s process and a lot of hedge funds.
“On up days, hedge funds cover,” McCullough explains in this clip from The Macro Show. “They don’t short like Hedgeye does. I’m proud to say that. A lot of hedge funds are just levered long portfolios that have shorts that they’re really bad at risk managing.”
“The fact of the matter is poorly constructed hedge funds, with bad portfolio managers, and bad decision making on the short side cover on up days.”
Watch the full clip above.
