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Spruce Point Capital: Activist Short-Selling

Hedge funds are nothing new; after all they’ve been around since the 1940s.  They are not known for their moderation, they short stocks, are largely not constricted by regulation and play by their own rules. However, one hedge fund – Spruce Point Capital - is making waves by researching how financially well behaved certain companies really are. Also called research activism the strategy involves carrying out independent research on selected public companies and assessing their intrinsic value. This research can change the perception of a company, enabling short sellers to take a position and profit from a decline in the share...