Overview

Equity strategies can be some of the most complex strategies within the trading universe. This is due to the fact that there is much more relevant information about an equity than about other asset classes. This mostly comes from the financial statements of the firm.

Strategies

Equity strategies can generally be broken into a set of broad categories. Many of these strategies can be cast in a form consistent with the Arbitrage Pricing Theory

• Value
• Growth
• Quality
• Technical

Implementation

Most equity funds will implement their portfolio bets within a set of constraints. Typically, constraints are used because the manager has a skill set consistent with the stated constraints, and they provide direction and re-assurance to potential clients as to what to expect from the fund and the types of risks that it will take.

• Long Only - invests only in long positions
• Short Only - invests only in short positions
• Long/Short - may invest in either long or short positions
• Options Based