- In qus 3rd from Core practice problems, Shaindy have to choose Equity related strategy except long/short.
- Why she choose ENM (mkt nutral) strategy instead of Short biased/dedicated short.
- They said large increase in int. Rate and geographical tension then mkt forecasting that market will fall and via short biased we can gain from market falling and can invest our cash holdings in gov securities on high int rate.
- Please explain why ENM?
Shailja TayalIntermediate
Hedge fund strategies
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Because its mentioned that markets are largely expected to be non-trending, relative value strategies, such as ENM work the best under these conditions. Also, they have mentioned about the capacity to use substantial amount of leverage, which again supports the ENM strategy point.