Short Index is a financial index compiled of the monthly performance of
10-25 short only money managers dating back to 1985. A short only money
manager is one who selects and sells short stocks or indices anticipating
and profiting from downward price movements.
Short Index provides a benchmark index by which to measure short selling
performance. It fills a void left by the failure of most national
consulting firms to adequately follow or develop monitoring and
measurement of short selling strategies. The index provides a relative
comparison of investors, pension funds, “dedicated” short selling money
managers and hedge fund managers.
Taken a step
further, the short index provides a measurement with which correlation
characteristics such as alpha, beta and standard deviation can begin to be
developed for individual short selling managers.
While short selling is highly visible in
the media today, short manager performance data and information is
scarce. Regularly published data on “short interest” is often incomplete,
misleading, or misunderstood.