Characteristics of Equity Hedge Strategies

Easy Hedge Fund Strategies Equity Hedge

Equity Hedge is one of the primary strategies employed within hedge funds, where the manager takes both long and short positions in equity securities. These strategies are designed to exploit price discrepancies and are typically focused on equity markets. Understanding the nuances of Equity Hedge strategies can help investors identify the risks and potential opportunities associated with them.

Which of the following statements correctly describes a characteristic of an Equity Hedge strategy?

An Equity Hedge strategy primarily focuses on taking long positions in bonds.

An Equity Hedge strategy typically employs a combination of long and short positions in equities to reduce overall market exposure.

An Equity Hedge strategy is mainly concerned with real estate investments to achieve positive returns.

Hint

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