Net Short
Categories: Derivatives, Investing, Managed Funds
See: Net Long.
It's about a hedge fund's exposure to the market and to their investments. To create a net short position, the fund might have $100 million in equity or investment in it. It then might be $200 million long QQQQ or whatever stocks or whatever derivatives...it then might be $500 million short...other stuff. Short stocks. Short currencies. Short long bonds. Whatever.
So in this case, the fund is $300 million net short.
See: Hedge Ratio.