What strategy might a hedge fund use to take advantage of positive alpha in a long equity position?

A) short sell the security with positive alpha
B) leverage and use the proceeds to go long in the alpha security
C) create a neutral position and gain from the alpha value increase
D) reduce reliance on margin

Positive Alpha

A metric indicating that an investment has performed better than its benchmark index, suggesting superior management or strategy.

Long Equity

An investment strategy where investors purchase stocks or equity securities with the expectation that their value will increase over time.

Hedge Fund

A private investment partnership that uses complex strategies and various instruments to achieve high returns.