Net Exposure

It's a hedge fund term. "Exposure" here is about exposure to moves of the market, "market" being defined, for the most part, as the S&P 500.

Hedge funds create a hedge ratio, i.e., the amount that they are hedged against market moves. A hedge ratio of 100% would mean that they are totally neutral to any market moves. They are fully, totally hedged; the only portfolio appreciation will come from quasi arbitrage positions they created in setting up their hedges.

So a typical fund will be, say, 3x long (i.e. if they have $100 million in equity, and will have bought $300 million in long positions). They'll then be, say, 2x short, i.e., shorted $200 million worth of...stuff. So their net exposure is 3/2 long:short.

And no, their net exposure has nothing to do with fishing, stockings, or those things cooks put over their hair.