Long-short portfolios take long positions in securities that appear attractive and short positions in securities that appear to be unattractive. Some of these portfolios are market neutral, which means that they divide their exposure equally between long and short positions in an attempt to minimize the losses that could occur from a broad market rally or decline. Other portfolios focus exclusively on stocks that are or could be involved in mergers and acquisitions.
Abbreviation: LO
Broad Asset Class: U.S. Stock
Primary Index: Standard & Poor's 500
Secondary Index: Russell 3000