git:20260717.9d4653a to git:20260731.cf46aef

75 added, 35 removed. Audit A to A.

---

name: long-short-equity

description: long short equity strategy, pair trade construction, market neutral portfolio, net exposure management, factor neutrality, equity long short, hedge fund strategy, alpha generation, stock picking portfolio construction, long short position management

multi_ticker_semantics: target_with_optional_peers

temporal_scope:

default_quarters: 8

max_quarters: 20

description: "8 quarters for portfolio construction; 20 for strategy backtesting."

- allowed_tools: [search_knowledge_entries, get_knowledge_entry, search_by_analogue, get_realtime_quote, search_xbrl_facts]

+ allowed_tools: [search_investment_strategies, get_investment_strategy, search_investment_cases, search_by_analogue, get_realtime_quote, search_xbrl_facts]

retrieval_scope: structured_only

+ layer_tags: ["L3"]

min_tool_diversity: 4

parameter_free: true

---

+ > Methodology fused from institutional long/short and buy-side research frameworks; all text is an original paraphrase.

## Defaults

| Parameter | Default Value | Rationale |

|-----------|---------------|-----------|

| parameter_free | true | This skill has no tunable parameters; analysis scope set by temporal_scope frontmatter |

## Preflight

Run canonical pre-flight per `contracts/preflight.md`. Propagate X-Agentii-Trace per `contracts/x-agentii-trace-header.md`.

+ ## Data Source Priority

+ 1. Strategy methodology — `references/strategy-methodology.md` (bundled long/short framework)

+ 2. Strategy frameworks — `search_investment_strategies(domain=fundamental)`

+ 3. Historical precedent — `search_investment_cases` + `search_by_analogue(company_situation=...)`

+ 4. Financials — `search_xbrl_facts` for unit economics and decline-rate evidence

## Methodology

### Retrieval Scope

structured_only

### Retrieval Strategy

- Query knowledge entries for relevant frameworks; query search_by_analogue for historical cases.

+ Branch (a) Structured Data Query from `contracts/retrieval.md`. Retrieve frameworks via `search_investment_strategies`, precedent via `search_investment_cases` and `search_by_analogue`. Detailed methodology in `references/strategy-methodology.md`.

### Temporal Scope

See frontmatter temporal_scope block.

### Tool Allowlist

See frontmatter allowed_tools.

### Protocol

- See ## Protocol section below.

- # long-short-equity | sed 's/-/ /g; s/\b\(.\)/\u\1/g'

+ Every long/short position rests on an **earnings disconnect** — a gap between what the market

+ has priced and what the business will deliver. The unifying question across all strategy

+ types is: what does consensus believe, and what do I believe differently? Strategy

+ spectrum, short archetypes, and process detail are in `references/strategy-methodology.md`.

- Portfolio strategy analysis powered by spec 037 L3 knowledge base.

+ **Consensus is not the published number.** Sell-side consensus is a simple average of

+ analyst estimates; buy-side consensus typically moves ahead of it. Trading against the

+ published figure while the real positioning has already shifted is a common and expensive

+ error. Triangulate the effective buy-side expectation before sizing any view.

- ## Preflight

- Run the canonical pre-flight sequence. See `contracts/preflight.md`.

+ #### Steps

- ## Data Source Priority

- 1. Knowledge entries (L3 strategy frameworks) → 2. `search_by_analogue` for strategy cases → 3. XBRL facts (position/portfolio context)

+ 1. **Strategy Classification**: Place the idea on the spectrum from spread-focused to

+ fundamentals-focused — merger arbitrage (0-18mo), general event-driven (0-24mo), activist

+ (0-24mo), value/deep value (0-5yr+), growth or growth-at-reasonable-price (0-5yr+). The

+ classification sets the expected holding period and the evidence bar. Categories overlap;

+ record the dominant driver rather than forcing a single label.

- ## Protocol

- 1. **Strategy Framework** — apply L3 frameworks from `references/knowledge-frameworks.md`

- 2. **Analogue Retrieval** — query historical cases matching the strategy pattern

- 3. **Quantitative Analysis** — compute relevant metrics using XBRL + knowledge frameworks

+ 2. **Consensus Reconstruction**: Establish the published sell-side figure, then estimate the

+ effective buy-side expectation. Document the gap and its direction — the disconnect is

+ the position, not the absolute valuation level.

- ## Methodology

+ 3. **Idea Provenance**: Record how the idea was sourced — industry research and trade events,

+ tangential analysis of adjacent markets, practitioner conversations, curated research

+ communities, or quantitative screens. Provenance predicts which failure modes to test

+ for: screen-sourced ideas need qualitative validation, conversation-sourced ideas need

+ independent quantitative confirmation.

- ### Retrieval Scope

- structured_only

+ 4. **Long-Side Thesis**: Apply value or growth frameworks per classification. Value requires

+ a discount to net present value on a price basis; growth requires a discount on an

+ earnings basis. State which, and why the market has mispriced it.

- ### Retrieval Strategy

- Query gold.knowledge_entries for frameworks; query search_by_analogue for historical cases.

+ 5. **Short-Side Archetype** (when shorting): Classify into one of three patterns —

+ **competition short** (complacent incumbent facing a credible new entrant; test the

+ entrant's unit economics and assess whether incumbent management can and will react),

+ **consumer euphoria** (a product with outsized enthusiasm that will not sustain; test via

+ market sizing and product work), or **disappearing business** (an incumbent in a

+ structurally terminal market; establish the rate of decline, the cash-flow profile during

+ decline, and whether cash can be redeployed). Each archetype has a distinct evidence

+ requirement — do not substitute a valuation opinion for the archetype test.

- ### Temporal Scope

- See frontmatter temporal_scope.

+ 6. **Precedent Retrieval**: Query `search_by_analogue` for the matching situation and

+ `search_investment_cases` for outcome history. Weight precedent by archetype match, not

+ sector match.

- ### Tool Allowlist

- See frontmatter allowed_tools.

+ 7. **Risk and Invalidation**: Name what would falsify the thesis and by when. For shorts,

+ additionally record borrow availability, short interest, and days-to-cover — a correct

+ short thesis in a crowded, hard-to-borrow name is not an executable position.

- ### Protocol

- See ## Protocol section below.

+ 8. **Output**: Deliver the classification, the quantified disconnect, the archetype evidence,

+ precedent with /v/ citations, and explicit invalidation conditions.

## Output File

`{ticker}/{YYYY-MM-DD_HHMM}_long-short-equity_{affix}.md`

## Output Structure

- 1. **Executive Summary** — key findings in 2-3 sentences

- 2. **Framework Analysis** — applied frameworks with specific findings

- 3. **Quantitative Metrics** — relevant calculations and benchmarks

- 4. **Historical Analogues** — matched cases with citations

- 5. **Risk Assessment** — key risk factors and mitigants

- 6. **Coverage Gaps** — data limitations and degraded flags

- 1. Executive Summary 2. Strategy Framework 3. Quantitative Analysis 4. Historical Analogues 5. Risk Assessment 6. Scenarios

+ 1. **Executive Summary** — strategy classification, the disconnect, and direction in 2-3 sentences

+ 2. **Strategy Classification** — position on the spread-to-fundamentals spectrum with expected holding period

+ 3. **Consensus Disconnect** — published sell-side figure vs estimated buy-side expectation, with the gap quantified

+ 4. **Idea Provenance** — sourcing route and the failure modes it implies

+ 5. **Thesis Detail** — long-side value/growth basis, or short-side archetype with its specific evidence test

+ 6. **Historical Analogues** — archetype-matched precedent with /v/ citations

+ 7. **Executability** — for shorts: borrow, short interest, days-to-cover

+ 8. **Risk and Invalidation** — falsification conditions and deadline

+ 9. **Coverage Gaps** — data limitations and degraded flags

## Error Handling

- | No L3 frameworks available | Proceed with standard analysis; flag `knowledge_coverage: degraded` |

+ | Error | Fallback |

+ |-------|----------|

+ | No strategy frameworks available | Proceed with `references/strategy-methodology.md`; flag `knowledge_coverage: degraded` |

+ | Buy-side consensus cannot be triangulated | Report the sell-side figure only and mark the disconnect as unquantified |

+ | Borrow / short-interest data unavailable | Mark the short as not executability-cleared; do not present it as actionable |

+ | `search_by_analogue` returns empty | Continue without precedent; annotate `coverage_gap` |

## Final Summary (TUI)

Include `### Key Citations` block (0–10 /v/ URLs).

## Memory Load

Load prior context before retrieval. See `contracts/memory-load.md`.

## Snapshot

Post-session synthesis. See `contracts/snapshot-synthesis.md`.

## Output Frontmatter

Structured output per `contracts/output-frontmatter-schema.md`.

## References

- `references/knowledge-frameworks.md`, `contracts/citation-and-memory.md`

+ - `references/strategy-methodology.md`

+ - `references/knowledge-frameworks.md`

+ - `contracts/citation-and-memory.md`

+ - `contracts/retrieval.md`

+ - `contracts/preflight.md`