The Long-Short Equity strategy involves taking a long position in stocks that are undervalued while simultaneously taking a short position in overvalued stocks. Although the strategy contains both long and short positions, it is often called a "long-short" strategy because the net exposure of the portfolio may be predominantly long or predominantly short.Long-short equity is a directional bet on the market. The long/short equity investor makes money when the stock price goes up or down. In this strategy, the investor typically buys a basket of stocks with one group of stocks being used to cover losses in another group.Long-short equity is an investment strategy that seeks to take a long position in underpriced stocks while selling short, overpriced shares. The resulting returns are driven by the relative value between these two positions, which tends to be asymmetric and can often result in positive returns even when overall market prices decline. This strategy can be applied to both equities and fixed income markets. Long-short equity investors are typically bottom-up stock pickers, who aim to find companies trading at significant discounts to their intrinsic values.Long-short equity is a strategy that seeks to take advantage of the asymmetry in financial markets. In other words, stocks tend to outperform when they are underpriced and underperform when they are overpriced. This strategy is used by many institutional investors including hedge funds and pension funds. Long-short equity is an investment strategy that seeks to take a long position in underpriced stocks while selling short, overpriced shares. This strategy can be applied to both equities and fixed income markets. Long-short equity investors are typically bottom-up stock pickers, who aim to find companies trading at significant discounts to their intrinsic values.
