New French Short Sale Regulations,

Hedge Funds Use Strategies that use Both Long and Short Positions to Enter and Exit Trades. The Hedge Fund Managers Often Close a Losing Long Position To Add The Funds to a Profitable Short Position, They May Hold. In Many Cases, Hedge Fund Managers are Long in Positions that are Rising in the Market, and Short on Positions that are Falling in the Market, Both Occurring at the Same Time. Hedge Fund Managers Closely Look at Stocks Which are Grouped into "Industry Groups." When Certain Industry Groups are Rising, In them, they will Have Leading Stocks, which Contribute to The Industry Groups Overall Rise. On the Other Hand, Just Like There are Rising Industry Groups, There are Also Falling Industry Groups. Looking at the Industry Groups which are Falling, Stocks can be Found Which are Falling Faster than the Others. Hedge Funds will "Hedge" their Positions on the Long Side, By Simultaneously Holding Positions on the Short Side or Vice-Versa.

The Reporting on How Hedge Funds Operate has been Vague, and Sketchy at Best. French Regulators are now Requiring Hedge Funds to Report their Short Positions on a Daily Basis. This Will be a Development to Watch Closely. Will the Europeans Follow? Will the United States? It is an interesting thing to Watch Right Now: French Regulators Require Disclosure