Steben Select Multi-Strategy Fund

Manager Investment Styles

There are six major hedge fund investing strategies.* The Steben Select Multi-Strategy Fund focuses on those that historically have been more liquid, with the goal of helping to prevent investor lock-ups and avoid required holding periods during difficult market environments.

Steben Select Multi-Strategy Fund primarily invests in the following hedge fund styles:

Equity
Long/Short
Global
Macro

Equity
Market Neutral

Fixed Income
Relative Value

Fund investments are subject to change at the discretion of the Investment Manager.

Equity Long/Short
Equity long/short strategies seek to balance risk and return by taking both long and short positions in stocks, stock options and futures. They involve buying "long" positions in stocks that are expected rise, and selling "short" positions in stocks that are expected to fall. The goal is to profit from both sides of the market (stocks going up or down) and potentially reduce risk by shorting unattractive stocks.

Global Macro
Global macro strategies look for up or down price movements created by economic, political and market trends. They may take long and short positions in any type of security, including equities, fixed income, currencies and commodities. They may also trade in any and all global markets.

Equity Market Neutral 
This strategy seeks to isolate informational inefficiencies in the market. An equity market neutral manager may make systematic predictions of relative stock performance based on a number of fundamental and technical signals. These signals are then used to buy the stocks with the highest ratings and sell short those with the lowest. The goal of the strategy is to remain neutral to the market — neither net long nor net short.

Fixed Income Relative Value
Fixed income relative value managers attempt to exploit mispricing among fixed income securities. Managers utilizing this strategy tend to seek returns through value convergence - looking for price divergences due to buyer and seller imbalances. Examples can include newly issued government bonds versus ones issued in the past, or government bonds vs. interest rate futures of the same maturity.  


*To learn more about the six major hedge fund investing styles, please read our educational guide Hedge Funds: An Introduction

 

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