Long/short strategies continue to dominate the hedge fund landscape both in terms of number of managers as well as assets under management, according to a white paper published by Convergent Wealth Advisors.

Long/short strategies continue to dominate the hedge fund landscape both in terms of number of managers as well as assets under management, according to a white paper published by Convergent Wealth Advisors. This space has broadened over time to encompass a variety of styles and strategies designed to mitigate market risk as well as capture pricing anomalies, exploit market inefficiencies and/or create value through event-oriented investments.  

The white paper, penned by Scott Larson, associate portfolio manager for directional strategies, reviews the broad spectrum of approaches to long/short equity and highlight their main differentiators based upon:

-Style – generally, technical trading versus fundamental stock selection;
-Portfolio Construction – position sizing, risk controls and sell disciplines;
-Strategy – market exposure and risk/return objective.

You can read the white paper here.