Dear Satyam,
Let me just give you my complete problem statement.

Question: I am a portfolio manager with a $20 million growth portfolio that has beta of 1.4 relative to the S&P 500. The S&P 500 futures are trading at 1,150 and the multiplier is 250. I would like to hedge my exposure to market risk over next few months. I have to identify whether an long or short hedge is appropriate.

Now I am confused how to answer on the basis of given information.

Please help...

Dear vaibhav,
I am not expert in this domain .But here my 50 cents
You have a idea how Ur portfolio is moving relative to S&P by visualising beta .Now u have to analyze the how the S&P500 is going to move or where u wana bet.If u believe S&P will show volatility Or u are certain abt its direction U can enter in strategy accordingly.