100% Equities Strategy Benefits & Risks

What is a 100% Equities Strategy


A 100% equities strategy is when a trader, mutual fund, or hedge fund only invests in equities as part of their strategy.  Companies that specialize in this practice will often promote their prospectus by saying that the fund is 100% into equities.  While a 100% equities strategy can produce some stellar results if done properly, equities are also considered a riskier investment than bonds.  An investor looking to invest in one of these funds will need a much longer time horizon due to the potential ups and downs that occur in the equities markets.

100% Equities Strategy and 2008 Market Sell Off


Many top funds took a beating during the 2008 bear market, but none took as big of a hit as the hedge funds which only specialized in long equities.  Unable to trade options or futures to hedge their positions, many of these companies suffered double digit losses month over month as a result of being heavily exposed to the equities markets.  The only hot spot for 100% equities trading firms are the ones who have been short during this tumultuous time in the world markets.  These firms have been able to gain over 30% on the year.
Tim Ord
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Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...

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