By: Rachael Levy
“Some managers think that this will increase piggy-backing, but so what? That already happens today with long positions,” says Vijay Marolia, CIO at Regal Point Capital Management, a manager with less than $100 million in assets which runs long-short equity strategies.
Piggybacking can also help managers, in some cases, he adds. “Whether we’re long or short, if other investors follow our lead, they actually help manifest our investment thesis,” he says. “I’ll admit it’s much easier when you’re managing millions and not billions, but that’s part of the job,” he adds. “It’s not supposed to be easy.”