CFA Level I · CFA Level I Exam · Hedge Funds
A hedge fund manager specializes in the healthcare sector, taking long and short positions in drug developers and device makers based on bottom-up research. This fund is best classified as a:
The fund is a sector-focused equity long/short fund. It uses fundamental bottom-up research to take long and short positions within a single sector, healthcare, rather than relying on quantitative models or trading macroeconomic themes across asset classes.
- Aquantitative directional fund
- Bsector-focused equity long/short fundCorrect
- Cglobal macro fund
Explanation
Fundamental, bottom-up long/short positions confined to one sector define a sector-focused equity hedge fund. Quantitative directional funds use model-driven signals. Global macro funds trade broad economic themes across asset classes.
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