APM regulatory environment, page-13

i am not a pro on this matter but to the best of my knowledge, that is because they are a shorter. they do not wish to hold the stock in a long term basis.

they will borrow the stock from their brokers (hence becoming the substantial holder), and sell them to other investors who are willing to pay the market price. Then, as the stock price falls, the hedge fund will buy the same shares at a lower cost and pocket the difference.

in short, MUFJ borrow the stock, sell them at market price, repurchase the stock at lower price and get out.

anyone with better understanding please correct me if i am wrong.