Different Types of Hedge Funds: Long/short hedge funds

There are long/short hedge funds that have a bias. For example short bias hedge funds tend to fell that the market is tending downwards and therefore reduce the amount of “long hedging” or perhaps they feel that a stock will very likely drop and not need any hedging. Long short equity funds dominate the industry with 379 billion USD in assets and covering 28% of total hedge funds. RAB Capital is the most successful fund as of 2006 with a 3 year annualized return of 60.2%.