Bailey Coates Don’t bail out

The hunter has become the hunted. Bailey Coates, the London-based hedge fund, claims to be the victim of a concerted campaign by hedge funds and investment banks’ proprietary desks who are shorting its portfolio. Hedge funds perfected the technique of hunting in packs. Why shouldn’t they turn on their own kind? Bailey Coates is vulnerable for three reasons. One, it specialises in equity long-short. That makes it easy for other hedge funds to borrow the stocks in its portfolio and short-sell the...