FYI: Among the “smart beta” strategies that recently have become popular are funds that go long securities with favorable characteristics and short those with unfavorable characteristics.
For example, to capture the value premium, a fund would go long value stocks and short growth stocks. Similarly, to capture the momentum premium, a fund would go long securities with positive momentum and short those with negative momentum.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-longshort-can-have-tax-edge?nopaging=1
