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FinanceLong/Short Strategy
By Sitraka Forler · Lecturer, Durham Business SchoolUpdated 13 September 2026 About this site
Buy winners (long) and sell losers (short) simultaneously.
A long/short equity strategy aims to profit from both rising and falling stocks, reducing net market exposure. Momentum-based L/S strategies rank stocks by past returns and buy the top quintile while shorting the bottom.