What is a long short fund?
A long-short fund is a fund that employs a long-short investment strategy by buying some equities and short-selling others.
That is, the fund purchases the stock of companies that it believes are undervalued and short sells the stock of companies that it believes are overvalued.
Therefore, a long-short fund can possibly make money even if the market takes a downturn, although the actual ratio of shorts to longs would depend on the fund's management and can change over time.
A long-short fund is a type of fund that takes both long and short positions in the stock markets. This allows the fund to adopt a more market neutral approach to investing, profiting from both positive and negative market movements.