An earlier entry pointed out how many sub-strategies there are under the title ‘long/short’. Take one step back and consider this table from the 2016 Preqin Global Hedge Fund Report (click for larger version):
The table continues for an entire second page but this half makes the point: that’s a lot of strategies before any examination of sub-strategies.
For those who like steady returns with as few shocks as possible ranking this list by the 5 year net return/volatility columns produces is a clear winner in the equity class: RV Equity Market Neutral (our yellow highlight). It is not the best on that ratio overall: two credit based approaches formerly best known for Jenga cameos in The Big Short pipped it.
The top 10 strategies on the return/volatility ratio look like this (click for larger version):
If drawdown is your nemisis the list may be useful reference point when selecting approach.