, Columnist
Why Short Sellers Can't Even Get Along With Each Other
Traders betting against stocks are no more likely to trust each other than they are corporate executives.
Harry Markopolos, pictured here in 2009, spent nine years trying to convince regulators that Bernie Madoff was a fraud.
Photographer: Bloomberg/BloombergIn the final episode of the HBO series Industry, young portfolio manager Harper Stern announces she wants to launch a short-only fund. “We'll knuckle down on companies who might be misleading the market, committing fraud or engaging in unethical business practices,” she pitches. “We will find the liars, we will find vulnerabilities – and therefore what is mispriced – using a combination of forensic accounting and corporate espionage.”
Her prospective backer replies sarcastically: “You’ll be popular.”