We believe that equity long/short strategies’ combination of net long exposure to the equity markets (market beta), active exposure management (flexible beta), and stock selection (alpha) provides an attractive risk/reward opportunity over a full market cycle. Our underlying hedge fund managers’ ability to shift exposure and change from aggressive to defensive stocks allows them to capture the upside of an upward-trending market while protecting capital in down periods. This has been instrumental in our pursuit of providing strong risk-adjusted returns versus the global equity markets where we invest.