Another avenue to invest in short sales are through hedge funds. Unlike the mutual funds previously presented, it is financially ludicrous for these hedge funds to pursue a purely short strategy. Short sale mutual funds are seen as part of a portfolio to hedge downturns, while hedge fund managers earn a commission on PnL, and thus need to keep the hedge fund profitable. As a result there are a group of hedge funds that pursue solely or as one of their major strategies long/short equity. As the name implies, these hedge funds purchase a mixture of both long and short positions of equity instruments to earn a profit during an economc peak, but also hedge against losses during an economic downturn. Below, I have compiled a list of some of the major hedgefunds that pursue the long/short investment strategy.
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