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There's more than one way to skin a cat
The ability to invest long and short is central to efficient risk mitigation in today's capital markets, so the theory goes, but your IT systems need to be able to keep up
Early on in the hedge fund days, the late 1980s and early 1990s, hedge funds were looking to short instruments, thus creating balance-sheet liabilities. IT systems at the time, however, were unable to handle this, given the long-only nature of most software programmers' investment clients at that time.
Shorting was problematic, requiring "somersaults and workarounds" from an accounting perspective, according to Tony Swei, chief executive of Tradar, a widely used portfolio management system. "The
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