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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· 18A 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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