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End of ‘fantasy’ stock market brings relief and pressure for short sellers

Hedge funds are enjoying the end of the bull market but making profitable bets is unlikely to get easier

Short sellers have had plenty to be grateful for in 2022 — falling stocks, the abrupt end of easy money and a historic energy crisis.

The combination has catapulted short-selling hedge funds, which profit from a fall in the price of a stock, centre stage, ending the largely barren run they endured in the more than decade-long bull market.

Renaud Saleur, a former trader at Soros Fund Management who now runs Geneva-based hedge fund Anaconda Invest, has relished a year he could hardly have scripted better.

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