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BW Businessworld

Short To Glory

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Amit Kumar’s primer on the art of short-selling stocks (Short Stories from the Stock Market, CreateSpace) landed on the book shelves late last year around the time when American short-sellers were staring at their portfolio losses on account of a splendid market rally in that country.

Kumar, who runs Artham Capital Partners in the US, explains the concept with examples generously drawn from US markets involving American companies. The racy part of the book starts from the third chapter where Kumar discusses ‘value traps’, which are fallen stocks (AIG and Carpetright) whose glory days may never come back. He  also lists out instances when short-selling strategies could fail — the pitfalls could range from small errors in picking stocks to getting trapped in hot stocks and companies with cooked up books of accounts. Short-selling is not for the faint hearted. It is always good to know the basics and theories of shorting before employing them on the boards. 

(This story was published in BW | Businessworld Issue Dated 07-04-2014)