Hedgies Drive Record Shorting in REITs

Lea Abrams, Sandra
May 2005
Investment Dealers' Digest;5/30/2005, Vol. 71 Issue 21, p13
Trade Publication
The article reports that hedge funds that apparently believe the pin is only centimeters away from the perceived bubble in real estate drove short interest in the shares of real estate investment trusts to an all-time high in the one-month period ended May 15, 2005. A recent study found that short interest as a percentage of equity float for all equity real estate investment trusts rose by 40 basis points to 3.4% between April 15 and May 15, 2005. The reason for increased hedge fund is that, a number of high-profile funds have been slammed by bad bets made recently in the corporate bond markets, and they are looking for a way to profit from what has seemed to be an endlessly appreciating real estate market.


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