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Equity Market Neutral |
Also found in: Acronyms, Wikipedia | 0.01 sec. |
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Equity Market Neutral In hedge funds, an investment strategy that involves taking a long position in some equities and a short position on equities in the same industry. For example, a hedge fund may buy an oil company's stock while selling short the stock of another oil company. Theoretically, this reduces risk to the portfolio because stocks in a single industry tend to move in generally the same direction. Thus, a gain on one stock would offset a loss on another. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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