Definitions for "Long/Short Equity"
A directional hedge fund strategy involving both long and short equity-oriented investment. Managers have the ability to shift from value to growth, from small to medium to large capitalisation stocks, and from a net long position to a net short position. Managers may use futures and options to hedge. The focus may be regional, such as long/short US or European equity, or sector specific, such as long and short technology or healthcare stocks. See also Long/Short Hedged, Jones Model
Strategy involves the purchase of equities that are deemed undervalued. This is hedged by shorting equities that are deemed overvalued, or through equity derivatives. Funds may be market neutral or have either a long or short bias.
An investment strategy, based on the Jones Model, where a manager buys securities believed to increase in price and short sells securities believed to decline in price. Portfolios may be anywhere from net long to net short depending on market conditions. This strategy highlights the manager's stock picking ability, while aiming to protect investors and reduce general market risk.