Equity Market Neutral


Also found in: Acronyms, Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
Alternatively, equities and futures are among the most liquid securities in which hedge funds invest, and not surprisingly, the average first-order serial correlations for equity market neutral, long/short equity, and managed futures are 5.1 percent, 9.5 percent, and-0.6 percent, respectively.
However, the category fixed effects in model 5 do differ in some ways from those of models 2-4, with significant coefficients for emerging markets, equity market neutral, and multi-strategy, as well as for managed futures, suggesting significant differences between the full graveyard sample and the subsample of funds with status code 1.
Equity Market Neutral and Sector: Technology/Healthcare posted more modest declines, with these declining -0.40% and -0.90% for June, respectively.
It said equity market neutral strategies were expected to be among the best performers in 2016 following strong performance last year.
On a net basis, 32% of investors said they were increasing their exposure to fundamental equity market neutral, up from 17% last year, and 18% to systematic equity market neutral, versus 11% last year.
By launching PTR-Agora, an equity market neutral fund with a long/short investment approach, Pictet Asset Management (Pictet AM) has enlarged its Total Return fund range.
Global equity markets were broadly impacted by the increase in risk aversion, with weakest areas of performance in Fundamental Growth only partially offset by gains in Short Biased and Equity Market Neutral strategies.
However, with hedge funds, they are bullish on equity market neutral strategies, which he says do well in markets with larger dispersion.
The firm added that fundamental equity long/short, fundamental equity market neutral and event driven are the top three most sought after alternative '40 Act mutual fund strategies over the next 12months.
The new funds complement two existing American Century-managed funds, Equity Market Neutral and Market Neutral Value, which will be rebranded with the AC Alternatives name, the fund firm says.
The Fixed Income Arbitrage and Equity Market Neutral sectors experienced the largest asset inflows on a percentage basis, with inflows in November equal to 2.64% and 1.06% of the October 2012 levels, respectively;
The three most-cited quantitative strategies by respondents were commodity trading advisor, quant equity market neutral and quant equity.