Two prominent short sellers — Kynikos Associates founder Jim Chanos and Safkhet Capital’s Fahmi Quadir — have recently been holding Zoom meetings with members of Congress and staff in hopes of warding off future regulations on short selling.
The meetings with Chanos and Quadir were arranged by the Managed Funds Association, according to Quadir, who said that “people are thinking seriously about this idea of disclosure of short positions,” which many hedge funds oppose.
Such a change wouldn’t just affect the small group of dedicated short sellers, whose numbers have diminished in recent years. It would also force long/short equity hedge funds, with almost $1.1 trillion in assets under management, to make their short positions public.