A: HedgeFolios does not do any short-selling directly. However, our three flagship model HedgeFolios (Opportunistic, Global Equity, and Income) will be able to buy inverse (or “bearish”) ETFs, which are designed to rise as their target index or sector declines. In effect, the investment fund is shorting the underlying equities, but you would simply be buying the inverse fund. Therefore, you would not need a margin account and would be able to profit from market declines. In times of adversity, we aim to hedge long positions in the strong sectors and use inverse funds in the weakest sectors to hedge our exposure. HedgeFolios are designed not only to preserve wealth during market plunges, but also to profit during times of adversity.