I Have perhaps a stupid questions regarding hedge funds net long/ net short exposure.
How can a fund have a zero net long exposure (market neutral) ? Shouldn't they maintain a maintenance margin with their broker for the stock borrowed? Is this just sitting in cash?
additionally, if a fund is short only, what do they do with the cash they receive when going short?
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Hey newguy123, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:
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