LONG/SHORT EQUITY

An investing strategy by which an investor will take long positions in stocks that he or she expected to climb and get short positions in the stocks that are anticipated to dive. It aims to reduce market exposure while generating from stock raise in long positions and price drops in short positions. Although this is not always the case, it would generate profit on a net basis, as long as these long positions gain more income than short positions, or vice versa. Associated with hedge funds, many apply the market-neutral strategy where the value of the long and short positions are the same.