Question #5
Reading: Reading 34 Hedge Fund Strategies
PDF File: Reading 34 Hedge Fund Strategies.pdf
Page: 2
Status: Correct
Correct Answer: A
Question
Which of the following best represents the net short position of a short-biased hedge fund strategy?
Answer Choices:
A. 100%
B. 0%
C. 50%
Explanation
The short-biased strategy does have some long exposure, leaving the net short exposure
typically 30%–60% of the portfolio. The 100% net short would be indicative of a dedicated
short strategy and a market neutral strategy may have a net short of 0%.