A form of hedge fund strategy. The manager takes a bet on the direction of the market by being either net long or net short.
If he is net long, he bets on a rise in the market, and if he is net short, he bets on a decline in the market. This is the opposite to a market neutral fund.
Long-bias hedge fund
This strategy lies halfway between a long-only fund and a market-neutral fund. The manager may have some short positions, but always maintains a net long strategy in anticipation of a rising stock market.
Short-bias hedge fund
Like a long-bias, short-bias funds combine long and short positions, but always maintain a net short exposure to the market. They suffer in a rising market but not as much as a dedicated short fund would.
Short-only hedge fund
The manager takes exclusively short positions. These funds suffer when the market rises and benefit when the market declines.