Equitizing a market-neutral portfolio

Question 1. I understand the equiting part. However, the text alos mentions de-equitizing a market-neutral portfolio by taking short position in ETFs or equity index futures. Under what circumstances de-equitization be preferable over equitization? Question 2. The appropriate benchmark for a market-neutral portfolio is a risk-free rate. However, the benchmark for a equitized market-neutral portfolio is the benchmark for the equities underlying the equitizing instrument. My thinking is that it should be sum of the two (risk-free rate + rate of return on the benchmark). According to the text, I am obviously wrong. Can someone please help clear the fog?

de-equitization when you expect bad, markets over the short term. a benchmark that comprises equities will implicity have the risk free rate built into it, so you shouldn’t add on the risk free rate - you would be double counting. With hedge funds (market neutral) the risk free rate acts as the bench mark due to non-normal returns and the elimination of systematic risk.