Hard-To-Borrow Stocks Trading Strategy (Negative Returns)
In the US, hard-to-borrow stocks underperform over 3-, 6-, and 12-month periods. Moreover, hard-to-borrow stocks consistently underperform those that are not hard to borrow. Is that negative edge big enough to make a hard to borrow stocks trading strategy? Verdad Research, a money manager, publishes a weekly research every Monday. In a recent paper, called…