When a short-selling hedge fund advertises in a prospectus that it is a 120/20 fund, this means that the fund may sell short up to ________ for every $100 in net assets and increase the long position to ________ of net assets.

Question

Quizplus · Accepted Answer

A 120/20 fund is structured to sell short up to $20 for every $100 in net assets, using the proceeds to increase the long position to $120 of net assets.

When a Short-Selling Hedge Fund Advertises in a Prospectus That