inflation risk factor portfolio question

CFA Level II Portfolio Management
#1

general question- if we want to hedge against inflation for a fixed income portfolio, would be go long the inflation factor portfolio? and if we want to decrease our sensitivity to inflation for an equity portfolio we would go short the portfolio with a beta of 1 for inflation? kinda confused how these factor portfolios work

wouldnt mind a comprehensive answer from s2000magician right about now :wink:

#2

To hedge inflation, you would go long on the inflation factor portfolio.

I will leave magician for the comprehensive answer.

#3

ok, i guess my question is would this change if we’re looking at hedging fixed income as opposed to equities?