That said, if the following charts prepared by Mary Meeker in the document titled USA, Inc. were attributable to a company, it is likely long/short fund managers would be heavily short, albeit hedged. In this case, the charts relate to a sovereign nation, which has unique alternatives versus a corporation – namely the ability to print money and create revenues (taxation). Using these abilities to any meaningful extent exacerbates the problems, however.
As the Economy Picks-up Speed
If investment managers such as David Einhorn of Greenlight Capital begin questioning practices of management or, even worse, are short a company’s securities, then it’s often a harbinger of things to come. Please reference Greenlight’s shorts of Allied Capital and Lehman, among others.