• Long/short funds use an investment strategy that seeks to go long on undervalued stocks while selling overpriced stocks.

  • Long/short positions aim to reinforce traditional long-only investing by taking advantage of profit opportunities in securities identified as both undervalued and overvalued.
  • Long/short assets are commonly used by hedge funds that often use relative long positions - for example, a 130/30 strategy where the long exposure is 130% of the AUM and 30% is the short exposure.