There is a significant difference between how a fund manager thinks and how you think. A good manager's Gross Exposure is always thoughtfully calculated, based on the manager's fundamental research and risk tolerance. A fund manager's gross exposure takes into account the value of both a fund's long positions and short positions and can be expressed either in dollar or percentage terms.The calculation of gross exposure takes into account the market value of a fund's long and short positions. A positive gross exposure indicates that the fund is long and will benefit from an increase in the value of an underlying asset. Conversely, a negative gross exposure indicates that the fund is short and will benefit from a decline in the value of an underlying asset.It is the percentage of a fund’s investments that are actually short. Different types of funds have different percentages, ranging from less than 1% to more than 100%. The higher the degree of exposure, the more leverage the fund manager has to increase returns. Gross Exposure is commonly used as an indicator to compare funds on a common basis because it expresses the level of risk taken by a fund’s investments.
