Shorting REITs requires an iron constitution. In the last 12 months REIT prices are up 17% and over the past five years the iShare Dow Jones REIT Index has nearly doubled. Jon Fosheim, manager of hedge fund Oak Hill REIT, has been shorting REITs since January 2005 (" Shorting Skyscrapers"). Despite the bullish run of REITs, Fosheim has been able to keep his limited partners happy with positive returns. How does Fosheim do it? By pair trading, or hedging every short he enters into by simultaneously going long a stock he thinks will prosper. In all, he usually has roughly...