Minimal market exposure. Return generated by security selection both long and short. Return goal is commonly T-bills plus 2-4%.
Allows exposure to equity market at reduced risk levels as defined by beta, volatility, and drawdown capture (downside capture). Return goal is market returns through a full market cycle with disproportionate upside/downside capture.
Often tactical with both beta and exposure. These strategies can deploy leverage to gain excess gross exposure; net exposure could be more than 1.0 as well.