20 Myths about Long-Short
16 Pages Posted: 11 Oct 2016 Last revised: 18 Sep 2020
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: Suggested Citation