Mortgage Help   Mortgage Rates Real Estate Credit Foreclosure Tax
	Hedge Funds Long or Short Equity No Load Mutual Funds Earn Big Returns On Your Investment Using A Well-Known, But Little-Understood No-Load Mutual Fund Strategy. Angel Investor Arbitrage Depository Receipts Emerging Markets Long or Short Equity Fund of Funds Comparison to Mutual Funds Comparison to Private Equity Hedge Fund Regulation Hedge Fund Risk Arbitrage Hedge Fund Strategies Venture Capital Long or short equity is an investment strategy, generally seen to be associated with hedge funds, which earns a return from stock picking, and also successfully isolates the risk as well as the return of a particular stock from the risk or return of the broader market or industry of that it is a part of. For instance, a long or short fund manager might sell a few automobile industry stocks short, while buying or taking a long position on another - short of Land Rover, long on Audi. Thereafter, any sort of development that improves the yield of the auto industry stocks in general will help this fund's Audi position, but will hurt its Land Rover position. Similarly, any general development that reduces the yield of auto industry stocks in general will hurt the Audi position, but will help its Land Rover position. Since the two positions are offsetting, the portfolio can be hedged against developments that may affect the entire auto industry in general. This is however not the same case, as a true equity market neutral strategy, which may in turn be regarded as just the limiting case of long or short equity. The main point, however, is that a long or short equity manager is in reality taking a position on the relative value of the two companies involved. He is in fact making a bet on the fact that, in general in the auto industry as a whole, Audi will eventually do better than Land Rover will.