Justin Lubell, Citadel's Global Equities head, noted that shorting has been a significant driver of returns, emphasizing a stark competition disparity compared to long positions.
Lubell highlighted that there's significantly less competition on the short side of investing, where many managers are focused on finding long ideas rather than seeking short opportunities.
He explained that concentrating on the short book allows his team to manage volatility effectively and enables their investment strategies to play out over extended periods.
Following major short-squeezes, many hedge funds have moved away from targeting individual stocks, preferring to hedge against indices due to previous volatility concerns.
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