An investment company that attempts to profit both from long positions in financial assets it considers undervalued and short positions in financial assets it feels are overvalued. For example, a fund may have long positions in stocks of energy companies and short positions in the stocks of financial institutions. Wise investment decisions by a long-short fund portfolio manager will result in the fund's shareholders making money in both up and down markets. Market-neutral funds are a type of long-short fund, but with relatively equal values of long and short positions. See also market-neutral fund.