market-neutral investing

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Market-Neutral Investing

An investment strategy in which one seeks to make the same return regardless of the performance of the broader market. There is no single way of executing a market neutral strategy, but it usually involves taking a combination of long positions and short positions. For example, one may take a long position on one index while also taking a short position on a similar but not identical index. Market neutral investing may also involve some form of arbitrage.

market-neutral investing

An investment strategy of attempting to assemble an investment portfolio with a return that is unaffected by returns in the overall market. For example, an investor might buy shares of a petroleum company the investor considers undervalued and sell short an equal value of shares of a different petroleum company the investor considers overvalued. The investor expects to profit regardless of whether the overall market rises or declines. Market-neutral investing utilizes hedging in an attempt to profit from market inefficiencies.
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Typical market-neutral investments will usually have both long and short positions in different stocks.
Global Banking News-22 April 2009-HSBC launches global market-neutral bond fund(C)2009 ENPublishing - http://www.
The style of the Rose & Sky Europe Fund is a hybrid of a long-short and market-neutral strategy, which combines the positive aspects of both, while maintaining market neutrality.
Kathleen DeRose, CFA and Nathan Lee, CFA Author a Second Market-Neutral White Paper
Even with such a split, there's always a chance that a market-neutral fund will be long on stocks that aren't performing and short on stocks that are.
Betzwood Capital Management applies a fundamentally focused, research intensive, market-neutral strategy to its investments in the media, telecommunications, and technology sectors.
More and more investors want to take advantage of the higher alpha potential available from relaxing constraints against short-selling, whether through market-neutral or '1X/X' strategies such as 130/30.
Recently, market-neutral strategies have emerged as investment tools with considerable diversification clout.
In 1990, we hired two firms to manage market-neutral portfolios for the US WEST pension trust.
The new no-load fund will seek to provide long-term capital appreciation while limiting exposure to general stock market risk by using a long/short market-neutral strategy.
Accordingly, we maintain a market-neutral Hold recommendation on RTN common stock with a six-month target price of $47.
5 billion of active long-only and market-neutral equity portfolios for institutional and individual investors, today announced that Michael Even, CFA will join the firm as President and Chief Executive Officer, effective June 1.