What Does Long/Short Fund Mean?

MS SAMEER (CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)   (14938 Points)

01 July 2010  
What Does Long/Short Fund Mean?
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.