When William Martin, Chairman & Chief Investment Officer of Raging Capital Management, talks about returns attribution in the first quarter, down on average -3.1% in both the onshore and offshore funds, investors might wonder about his strategy, particularly the short exposure. With the HFR Hedge Fund Index up 2.7% in the first quarter, the S&P 500 up 6% and the Nasdaq up 10%, Raging Capital reduced its long exposure and raised shorts. While the hedge fund has “numerous top-down concerns” that ramble through the economy and geopolitical landscape, the real reason for the shorts is idiosyncratic, bottoms-up work. A Valeant...