A trade thesis was a trade idea or hypothesis that was individually hedged to be market-neutral. We thought this had the advantage that we would hedge each trade as was most appropriate for that specific idea. Doing it our way, we felt that we would be better able to avoid the dreaded mid-cap/large-cap bias where you are long mid-cap names and hedge those with the wider market through a large-cap-dominated index – a very typical bias for hedge funds. But we also avoided the industry bias that can come from being long on a particular industry and short on the whole market, which in turn may be
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