SEC Adopts New Short Position Reporting Rule

The SEC recently adopted Rule 13f-2, which requires certain fund managers who engage in short selling to file detailed reports on their positions. This new regulation aims to increase transparency around short selling activity. With decades of experience at major hedge funds, we understand the challenges of short selling. Generating alpha on the short side can be difficult when markets trend upwards over the long-term. However, short positions can provide valuable hedging and allow managers to generate gains during market declines.

Under the new rule, applicable fund managers must file Form SHO, which includes a cover page and two information tables detailing short positions. This marks an increased regulatory reporting requirement for institutional investment managers involved in short selling.

If your firm engages in short selling and needs assistance complying with Rule 13f-2, please contact us. Our team can connect you with SEC reporting experts to ensure full compliance with the new short position disclosure requirements, and help you navigate this change in regulatory reporting.

For all the details check out the SEC’s Rule 13f-2 Fact Sheet.

John Zoraian John Zoraian is a Principal in Grassi’s Financial Services practice, where he provides expert fund administration, compliance and advisory services to hedge and private equity funds, funds of funds, master-feeders, investment advisors, broker-dealers, family offices, fintech entities and more. John draws from more than 35 years of experience in the hedge fund business. Prior to joining Grassi, he established S&Z Fund Services, a division... Read full bio