Equity hedge strategies involve the combining of long stock holdings with short sales of stock or indices. Equity long/short fund managers use a number of different technical and fundamental measures to determine security selection. In contrast to equity market neutral strategies, equity long/short managers will maintain either net long or net short positions. Typically these portfolios are net long biased with a range of net long exposures between 10% and 50% depending on market conditions. On the other hand, some managers will maintain much higher net long exposures (>70% net long) and could be classified in a different category of directional equity.
