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CFA Level 2
Alternative Investments

Understanding Equity Hedge Strategies

Very Easy Hedge Fund Strategies Equity Hedge

Hedge funds employ various strategies to manage investments, one of which is known as Equity Hedge. This strategy involves taking both long and short positions in equities, aiming to capitalize on market inefficiencies while also trying to reduce risk exposure. Understanding the nuances of Equity Hedge is essential for investors who seek diversified asset management. Which of the following best describes an Equity Hedge strategy?

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