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Bridge over ocean
1 September 1996 Financial Analysts Journal Volume 52, Issue 5

20 Myths about Long–Short

  1. Bruce I. Jacobs
  2. Kenneth N. Levy

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.

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