Discussion Questions and Problems
1. What are the major strategy classifications within long and short equity funds?
2. What is the AUM of long and short equity funds today, and how does it compare to its peak?
3. Why did the strategy grow so quickly between 1998 and 2007?
4. What sort of investors are attracted to the strategy, and why?
5. What is the return profile of the sector, and how does it compare to traditional asset classes?
6. How do long and short equity strategies compare to global macro funds, and why would an investor choose one versus the other?
7. What is the expected return from a risk arbitrage fund and when does the strategy do best?
8. What are some similarities and differences between a variable bias fund and an equity market neutral fund?
9. What are some of the unique resources and capabilities needed to run a quantitative equity market neutral fund?
10. Why are event-driven funds and risk arbitrage funds less correlated to the overall stock market than long biased or variable biased funds?
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