The difference between market-neutral and long-short hedges is that market-neutral hedge funds establish long and short positions on both sides of the market to eliminate risk and to benefit from security asset mispricing whereas long-short hedges establish positions only on one side of the market allocate money to several other funds while long-short funds do not invest in relatively stable proportions of stocks and bonds while the proportions may vary dramatically for long-short funds invest only in equities and bonds while long-short funds use only derivatives