Identifying Hedge Fund Strategies

Hedge funds are a popular category of alternative investments, known for their diverse strategies and potential for high returns. Understanding the various types of hedge funds is crucial for investors looking to diversify their portfolios. Some hedge funds may focus on a specific strategy, while others employ a broader approach. One key distinction is the investment strategy used by these funds.

Which of the following hedge fund strategies is primarily focused on capitalizing on price discrepancies in securities through long and short positions?