Hedge funds are at odd over how the reporting of emissions data related to short selling strategies should be reported, according to a report by Bloomberg.
Some funds say that if a short bet against an oil producer pays off and the stock price falls, that should be reported as negative in terms of CO2 emission, while others says that the producers CO2 emissions remain the same whether the stock price falls or rises.
At Capital Fund Management is cited as a fund that follows the first approach while the report credits AQR Capital Management’s Cliff Asness has saying that he doesn’t think shorting counts as a carbon offset.
