Know your long stocks and manage downside risk

This strategy is most suitable for investors who seek high total return, seek a replacement for core large cap holdings and/or want to add increased return potential to existing growth and value holdings.

Source: JPMorgan Asset Management

Using the strategy

Potential benefits

Each type of long/short strategy can play a unique role within an investment portfolio. Generally speaking, these strategies seek to either:

• Decrease risk by hedging or neutralising portfolio volatility (these are typically considered alternative investments)

or

• Enhance return potential by extending traditional strategies to allow increased exposure to an investment manager’s best ideas.

Source: JPMorgan Asset Management