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Long-short funds are a type of hedge fund that uses a combination of long and short positions to generate returns.
Long-short funds are a type of hedge fund that uses a combination of long and short positions to generate returns. They have the potential to reduce risk and generate high returns, but also come with certain disadvantages. Investors should carefully consider the risks and potential benefits before investing in long-short funds.
What is a long-short fund?
A long-short fund is an investment strategy that involves taking long positions in stocks expected to increase in value and short positions in stocks expected to decrease. This approach aims to generate positive returns regardless of market conditions.
Are there long-short mutual funds in India?
Yes, some Indian mutual funds employ long-short strategies. These funds use both long and short positions to balance risk and seek stable returns, though they are more commonly found within Alternative Investment Funds (AIFs) in India.
What are the top hedge funds or AIFs in India?
Top AIFs in India vary over time, but some consistently well-regarded funds include Avendus Absolute Return Fund, Edelweiss Alternative Equity Scheme, and True Beacon One. These funds often employ sophisticated strategies like long-short, market-neutral, or quant-based approaches.
What is a market-neutral strategy?
A market-neutral strategy seeks to minimize exposure to market fluctuations by balancing long and short positions, aiming to achieve returns that are independent of overall market performance. This approach often focuses on relative performance between assets.
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