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You're reading from  Algorithmic Short Selling with Python

Product typeBook
Published inSep 2021
PublisherPackt
ISBN-139781801815192
Edition1st Edition
Concepts
Financial Technology
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Author (1)
Laurent Bernut
Laurent Bernut
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Laurent Bernut

Laurent Bernut has 2 decades of experience in alternative investment space. After the US CPA, he compiled financial statements in Japanese and English for a Tokyo Stock Exchange-listed corporation. After serving as an analyst in two Tokyo-based hedge funds, he joined Fidelity Investments Japan as a dedicated quantitative short-seller. Laurent has built numerous portfolio management systems and developed several quantitative models across various platforms. He currently writes and runs algorithmic strategies and is an undisputed authority on short selling on Quora, where he was nominated top writer for 2017, 2018, and 2019.
Read more about Laurent Bernut

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Summary

Market participants tend to follow a predictable arc from the moment they proudly first set foot on the short selling terra incognita to the time they subconsciously abdicate sovereignty. The most important thing to remember is that the short side is not the inverse of the long. You cannot rely on mispriced stocks to revert to their fair valuations, and "structural shorts" are only profitable in the minds of short selling tourists. The short side obeys its own laws.

Among the challenges short sellers face that long-only market participants don't are overcoming a scarcity of information and bringing an abundance mindset to successfully counteract distorted exposures.

Now that we have dispelled a few myths about short selling and analyzed the idiosyncratic dynamics of the short side, the next parts of this book will be about building a short selling practice from the ground up. In Part II, The Outer Game: Developing a Robust Trading Edge, we will look...

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Algorithmic Short Selling with Python
Published in: Sep 2021Publisher: PacktISBN-13: 9781801815192
© 2021 Packt Publishing Limited All Rights Reserved

Author (1)

author image
Laurent Bernut

Laurent Bernut has 2 decades of experience in alternative investment space. After the US CPA, he compiled financial statements in Japanese and English for a Tokyo Stock Exchange-listed corporation. After serving as an analyst in two Tokyo-based hedge funds, he joined Fidelity Investments Japan as a dedicated quantitative short-seller. Laurent has built numerous portfolio management systems and developed several quantitative models across various platforms. He currently writes and runs algorithmic strategies and is an undisputed authority on short selling on Quora, where he was nominated top writer for 2017, 2018, and 2019.
Read more about Laurent Bernut

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