A market directional hedge fund is one in which the asset manager retains some exposure to "systematic risk."

Question

Quizplus · Accepted Answer

A market directional hedge fund aims to profit from changes in market direction, but the asset manager still retains some exposure to overall market risk (systematic risk). This is in contrast to market-neutral hedge funds, which aim to hedge out systematic risk and focus on exploiting relative mispricings between correlated assets.

A Market Directional Hedge Fund Is One in Which the Asset