David Rocker, of Rocker Partners LP, owns a hedge fund that is boasting 50% returns, impressive when compared to the industrywide average of 7%, according to The Wall Street Journal.

However, Rocker's hedge fund is doing well as a result of short selling, which is when investors bet that stock prices will fall, with hopes up profiting from the decline.

"No one has ever had a warm spot in their hearts for short sellers," Rocker said.

It has been a tough time for short sellers, for the past 15 years, because the stock market has been up most of that time.

 

Van Money Manager Research reports that of the 7,000 hedge funds that it tracks, only 12 specialize in short selling, one of which is Rocker's. "We don't get any respect. We're the Rodney Dangerfield of the investment community," Rocker added.

Many of those who oppose short selling believe that those who engage in it spread rumors, in an effort to drive the market down, and so this is why many do not respect their practice.

Rocker's firm earned about a quarter of this year's profits from increases in the share prices of technology-research firm Gartner, Lexar Media Inc, and Ryerson Tull Inc.

But most of the growth can be attributed to shorting a number of stocks, including Krispy Kreme Doughnuts Inc., Take Two Interactive Software and Tempur-Pedic International.

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