Equity Hedge investing consists of a core holding of long equities hedged at all times with short sales of stocks and/or stock index options. Some managers maintain a substantial portion of assets within a hedged structure and commonly employ leverage. Where short sales are used, hedged assets may be comprised of an equal dollar value of long and short stock positions. Other variations use short sales unrelated to long holdings and/or puts on the S&P index and put spreads. Conservative funds mitigate market risk by maintaining market exposure from zero to 100 percent. Aggressive funds may magnify market risk by exceeding 100 percent exposure and, in some instances, maintain a short exposure. In addition to equities, some funds may have limited assets invested in other types of securities.
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I hereby certify that I am either an Accredited Investor, in accordance with Rule 501(a) of Regulation D of the US Securities Act of 1933, OR a Qualified Purchaser, in accordance with Section 2(a)(51) of the US investment Company Act of 1940. If I represent a UK person I represent either a professional client or an eligible counterparty and not a retail client as such terms are defined in the Rules of the UKs Financial Conduct Authority.