What is a long short fund?

What is a long short fund?

Answers:

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.

Answered by Logan Ward | 2019-02-03 |

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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.

Answered by Nick Walker | 2019-02-02 |

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