As the number of hedge funds continues to expand, the opportunities to short stocks is shrinking, MarketWatch reports. According to some estimates, the percentage of shares sold short on the New York Stock Exchange has doubled since 2000 to about $500 billion a year.

Thus, rather than short a stock because of a belief that its fundamentals are deteriorating, hedge fund managers are taking riskier bets that the company might simply miss profit forecasts or have a couple of bad quarters.

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