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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The initiative also calls into question the independence of the SNB because it makes its market-friendly and market-neutral investment policy impossible.
In addition, the firm manages a multi-PM equity market-neutral hedge fund, and provides beta and hedging solutions for institutional clients.
The organization recommended the 'diversification of production, consumption and income by removing commodity-specific incentives; gradual removal of rice import quotas; and transformation of the NFA (National Food Authority) into a market-neutral agency managing emergency stocks.'
Furthermore, the organization supported the proposal to convert the National Food Authority (NFA) into a 'market-neutral agency managing emergency stocks' so as not to distort the prices of rice in the market.
"We see a 15% probability for a market-neutral outcome of an extended, depoliticised, interim administration (either as a result of delayed or disputed elections or due to protracted negotiations among the political parties following a hung Parliament).
Following this logic, various endowments and institutions reduced allocations to market-neutral long-short strategies that generally fair better during periods of market stress.
Of what relevance is the performance of the S&P 500 to a market-neutral strategy or a fixed income arbitrage strategy?
Low-volatility hedged strategies fit the overall view comfortably: When market direction isn't clear, eking out returns from market-neutral or relative-value strategies is often a good approach.
Market Imbalances is one of the last few hidden treasures of market-neutral profit making and it comes to you absolutely for free with this whitepaper: https://alarictrader.com/blog/market-imbalances.
"Long-short market-neutral applications are giving you even more.
Market-neutral strategies were generally also mixed in September.
Its alternative investments include managed futures, commodities, and hedge funds diversified across long/short, macro, relative-value, event-driven and market-neutral equity strategies.