What is a Long Short Strategy?

Submitted by Rooz Eftekhari on Sat, 07/29/2017 - 11:48

We are influenced by our experiential bias, what we learn first or have done often. Coming from a trading background going short feels as natural to do as putting the car in reverse. It's just part of the process of getting to the destination. Only slightly different than putting your car in drive, and likewise usually for shorter periods of time. Yet, there seems to be an aura of mystery surrounding what a long short strategy is? Some people have vaguely heard the term and usually in the context of hedge funds. So here's a brief synopsis.