Hedging by Basket of Shorts
We provide hedging to our capital by short-selling a basket of fundamentally declining companies, typically 15-20 stocks.
Basket of Equity Shorts
Given the inherent risk of short sale (e.g. acquisition, theoretically unlimited loss), we cap the maximum weight of a single short position at any given point in time. Our holding period of a short position is typically long, often more than 3 years throughout the period of business decline.