What a great time to have been in a long/short fund. Big drops in the market like now although providing good buying opportunities at some point, provided an upturn follows of a good magnitude, highlight the deficiencies of not having the ability to profit on the down side as well in the same fund.
Although hardly conclusive at this point, and not strictly an accurate comparison, at least there is indicative evidence to show how well long/short funds (eg Platinum International) have performed in recent days versus long-only funds (Platinum Unhedged) in the attached charts. Platinum International is down 2.55% from its most recent high on July 10th, while the Platinum Unhedged fund is down 4.53% over the same period.