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Within directional strategies, there are a number of sub-strategies.

" Emerging markets " funds focus on emerging markets such as China and India, whereas " sector funds " specialize in specific areas including technology, healthcare, biotechnology, pharmaceuticals, energy and basic materials.

Funds using a " fundamental growth " strategy invest in companies with more earnings growth than the overall stock market or relevant sector, while funds using a " fundamental value " strategy invest in undervalued companies.

Funds that use quantitative techniques for equity trading are described as using a " quantitative directional " strategy.

Funds using a " short bias " strategy take advantage of declining equity prices using short positions.