20 Myths about Long-Short

16 Pages Posted: 11 Oct 2016 Last revised: 18 Sep 2020

See all articles by Bruce I. Jacobs, Ph.D.

Bruce I. Jacobs, Ph.D.

Jacobs Levy Equity Management

Kenneth N. Levy

Jacobs Levy Equity Management

Date Written: November 2, 1995

Abstract

Popular conceptions of long–short investing are distorted by a number of myths, many of which appear to result from viewing long–short from a conventional investment perspective. Long–short portfolios differ fundamentally from long-only portfolios in construction, in the measurement of their risk and return, and in their implementation costs. Furthermore, long–short portfolios allow greater flexibility in security selection, asset allocation, and overall plan structure.

Keywords: Long-Short Investing, Market Neutral Portfolios, Integrated Optimization, Short Selling, Equitized Long-Short Portfolios, Active Risk, Leverage, Alternative Investments, Active Extension, Enhanced Active Equity

JEL Classification: G11

Suggested Citation

Jacobs, Bruce I. and Levy, Kenneth N., 20 Myths about Long-Short (November 2, 1995). Financial Analysts Journal, Vol. 52, No. 5, pp.81-85, September/October 1996, Available at SSRN: https://ssrn.com/abstract=2433733

Bruce I. Jacobs (Contact Author)

Jacobs Levy Equity Management ( email )

100 Campus Drive
P.O. Box 650
Florham Park, NJ 07932-0650
United States
973-410-9222 (Phone)
973-410-9333 (Fax)

HOME PAGE: https://jlem.com/who-we-are#/nav/founders

Kenneth N. Levy

Jacobs Levy Equity Management ( email )

100 Campus Drive
P.O. Box 650
Florham Park, NJ 07932-0650
United States
973-410-9222 (Phone)
973-410-9333 (Fax)

HOME PAGE: https://jlem.com/who-we-are#/nav/founders

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