Long/Short Fund

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Dictionary Says

Definition of 'Long/Short Fund'

A type of mutual fund that mimics some of the trading strategies typically employed by a hedge fund. Unlike most mutual funds, long/short funds use leverage, derivatives and short positions in an attempt to maximize total returns, regardless of market conditions. The amount of leverage used and the number of derivatives and short positions that long/short funds may contain are limited by law. These funds invest primarily in stocks.
Investopedia Says

Investopedia explains 'Long/Short Fund'

Long/short funds are the mutual fund industry's attempt to bring some of the advantages of a hedge fund to the common investor. Most long/short funds feature higher liquidity than hedge funds, no lock-in period and lower fees. However, they still have higher fees and less liquidity than most mutual funds. Furthermore, unlike most mutual funds, long/short funds usually require a minimum investment of more than $1,000, although some do not. Long/short funds aren't allowed to use as many derivative and short positions nor as much leverage as hedge funds, but they do provide some diversification to the average investor in down markets.
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'Long/Short Fund'

  • Hedge Fund Mojo For A Sinking Portfolio

    http://stocks.investopedia.com/stock-analysis/2008/Hedge_Fund_Mojo_For_A_Sinking_Portfolio.aspx
    ... Get Free Stock Analysis By Email. Concepts A long/short fund typically buys stock
    positions and holds them for the long term while simultaneously selling ...

  • Evaluating Hedge Fund Performance

    http://www.investopedia.com/articles/stocks/11/evaluating-hedge-fund-performance.asp
    ... 2. Market-Neutral Funds: A sub-type of a long-short fund, however fund managers
    attempt to hedge against general market movements (thus the name “market ...

  • CFA Level 1 Study Guide - Derivatives - Managing Risk with Options ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/managing-risk-options-strategies-long-short-call-put-positions.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • A Brief History Of The Hedge Fund

    http://www.investopedia.com/articles/mutualfund/05/HedgeFundHist.asp
    ... This investing innovation is now referred to as the classic long/short equities
    model. ... earned his place in investing history as the father of the hedge fund. ...

  • CFA Level 1 Study Guide - Alternative Investments - Hedge Fund ...

    http://www.investopedia.com/exam-guide/cfa-level-1/alternative-investments/hedge-fund-classifications.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
    Investing; Markets; Personal Finance; Active Trading; Forex; ...

  • How To Invest Like A Hedge Fund

    http://www.investopedia.com/articles/mutualfund/08/hedge-fund-invest.asp
    ... SEE: A Brief History Of The Hedge Fund.) Cash Flow Is King Hedge ... and profit in any
    environment, or employ complicated dual long/short investment strategies. ...

  • Getting Positive Results With Market-Neutral Funds

    http://www.investopedia.com/articles/mutualfunds/09/market-neutral-funds.asp
    ... The simplest and most conventional example would be a long-short stock fund, but
    bonds, currencies, commodities and derivatives could be used as well. ...

  • Picking Top-Quality Hedge Funds

    http://www.investopedia.com/articles/mutualfund/09/search-hedge-fund.asp
    ... funds. For example, the guidelines for a merger arbitrage fund will differ
    from those for a long-short market-neutral fund. (Learn ...

  • Getting To Know Hedge-Like Mutual Funds

    http://www.investopedia.com/articles/mutualfund/09/hedge-like-mutual-funds.asp
    ... For example, Morningstar reports that in 2002, the value of the average stock mutual
    fund fell 22% while long-short mutual funds only dropped 0.3% in value. ...

  • Hedge Funds Go Retail

    http://www.investopedia.com/articles/mutualfund/07/mutual_fund_retail.asp
    ... to implement them; there's the market neutral, convertible arbitrage, long/short,
    event driven ... for investors who are considering buying into a fund of funds ...

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