Equity Hedge Strategy Basics

Very Easy Hedge Fund Strategies Equity Hedge

Hedge funds are investment funds that employ a range of strategies to achieve high returns. One such strategy is known as 'Equity Hedge,' which involves taking long and short positions in equities. Understanding the core characteristics of this strategy is essential for investors interested in hedge fund performance. Which of the following statements best describes the Equity Hedge strategy?

Equity Hedge strategies primarily focus on investing in fixed-income securities.

Equity Hedge strategies involve buying undervalued stocks while shorting overvalued stocks.

Equity Hedge strategies are limited to investments in technology companies.

Hint

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