The No-Bias hedge fund strategy is to:

Question

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A common strategy in this type of fund would be to pair two stocks in the same industry. You would buy the one that you think is the most undervalued and sell short the one that you think is the most overvalued. The manager would do this across many industries with the overall goal of making a profit on the spread between the two price changes. In rising markets, the long position should rise more than the short position, and in down markets, the short position should fall more than the long position. The difference between the two price changes is the profit for each paired trade.

The No-Bias Hedge Fund Strategy Is To