FS Long/Short Equity Fund is designed to seek equity-like returns while mitigating downside risk Downside risk is an estimate of an investment’s potential to suffer a decline in value if the market conditions change, or the amount of loss that could be sustained as a result of the decline. exposure – an attractive profile in a world flush with uncertainty. The fund analyzes large swaths of data to identify the best ideas of hedge fund managers in order to generate differentiated returns for investors.
Growth of $100,000 (12/31/2018–12/31/2020)1
Past performance is not indicative of future results. Source: Bloomberg.
See endnotes for information on the benchmarks referenced above. Returns for time periods greater than one year are annualized. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost, and current performance may be lower or higher than the performance quoted. Please call 877‑628‑8575 or visit our website at www.fsinvestments.com for performance data current to the most recent month-end.
Long/short investing seeks to balance the often-competing goals of maximizing equity returns while minimizing the downside risk of investing in the stock market.
Most investors understand there’s a trade-off between an investment’s risk and return. The goal of many fund managers is to generate a strong level of return with a modest level of risk.
Fear of missing outDesire to stay invested in the market to reach return goals
Fear of lossGoal to avoid the impact of market downturns
Long/short investing may be unfamiliar to many individual investors – and for good reason. This strategy has historically been used by institutional investors through access to hedge funds and large institutional managers. Long/short investing seeks to reduce market exposure while profiting from stock price changes.
Purchase stocks expected to increase in value
Sell short stocks expected to decrease in value
Institutional investors have historically outperformed individual investors thanks in large part to their ability to access high-quality managers as well as a broader selection of investment strategies. Advances in data processing and better insight into how some of the world’s largest managers generate returns have made it possible for individuals to invest like large institutions.
Large institutional managers must report their holdings each quarter, providing insight into some of their best investing ideas.
Improvements in technology have made processing and drawing insights from immense amounts of data much easier.
The smart use of these innovations increases individual investors’ access to differentiated returns.
Total return since inception1
Downside capture Downside capture is a ratio that measures whether and to what extent an investment has underperformed a broad benchmark during periods of market weakness.
to S&P 500