Equity Non-Hedge funds are predominately long equities, although they have the ability to hedge with short sales of stocks and/or stock index options. These funds are commonly known as "stock-pickers." Some funds employ leverage to enhance returns. When market conditions warrant, managers may implement a hedge in the portfolio. Funds may also opportunistically short individual stocks. The important distinction between equity non-hedge funds and equity hedge funds is equity non-hedge funds do not always have a hedge in place. In addition to equities, some funds may have limited assets invested in other types of securities.
- Sector Healthcare Biotechnology definition
- Merger Arbitrage definition
- Efficiency Ratio definition
- Equity Hedge definition
- Lock up definition