Neutral hedge

Neutral hedge

Hedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta.

Neutral Hedge

A series of positions and offsetting positions on a security the results in a risk-free return. See also: Compound option.
References in periodicals archive ?
Gerchen is a former Portfolio Manager at Alyeska Investment Group, a Chicago-based market neutral hedge fund, where he specialized in risk arbitrage and event driven investing.
IQ Hedge Market Neutral Tracker ETF (NYSE Arca: QMN) providing exposure to the market neutral hedge fund universe (launch 10/4/12);
As pointed out by Bakshi, Cao, and Chen (1997), the inclusion of another option in the delta-vega neutral hedge may not only neutralize the volatility risk but also reduce the remaining gamma risk in the hedging portfolio.
It has a global focus and seeks to achieve its investment objective through investing in underlying, independently market neutral hedge funds.
Schetakis joins MFC Global from Caisse de depot et placement du Quebec where he had managed US equities and a market neutral hedge fund.
Market Neutral Hedge Fund and Hedge Fund Index investors will be attracted by the expected low-to-negative correlation to industry benchmarks for that strategy.
QMN is designed to offer investors liquid, transparent Market Neutral hedge fund exposure.
Deephaven manages a multi- strategy market neutral hedge fund, with a primary focus on preservation of capital.
Hedge funds vary in size and trading strategies, including categories such as: relative value hedge funds, event driven hedge funds, equity hedge funds, global asset allocator hedge funds, short selling hedge funds, sectoral hedge funds, and market neutral hedge funds.
OFI Tremont Core Diversified Hedge Fund and OFI Tremont Market Neutral Hedge Fund, which opened for investment last week, are based on strategies that Tremont has offered clients on a fully discretionary basis for several years.
Kinnison moves from American Express Hedge Fund Group where he co-managed long-biased and market neutral hedge funds with combined assets in excess of $1 billion.
HedgeIQ(TM) Market Neutral - provides performance characteristics comparable to market neutral hedge fund styles.