Equity Hedge Strategies Overview

Easy Hedge Fund Strategies Equity Hedge

John is analyzing various hedge fund strategies for his investment portfolio and is particularly interested in Equity Hedge strategies. He notes that Equity Hedge strategies focus on investing in stocks with the addition of using short positions to manage risk and enhance returns. To deepen his understanding, John comes across three statements concerning Equity Hedge strategies. He is trying to determine which statement is accurate.

Equity Hedge strategies solely rely on long positions in stocks and do not involve short selling.

Equity Hedge strategies typically employ a mix of long and short positions in equities to mitigate downside risk.

Equity Hedge strategies are exclusively focused on investing in private equity firms.

Hint

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