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 ?
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.
QMN is designed to offer investors liquid, transparent Market Neutral hedge fund exposure.
HedgeIQ(TM) Market Neutral - provides performance characteristics comparable to market neutral hedge fund styles.
today said its latest industry research signals a rebound for Equity Market Neutral hedge funds that use statistical arbitrage techniques.
The Markets Defender Basket is designed to provide exposure to a basket of Credit Suisse/Tremont Sector Invest Indices, primarily focused on equity market neutral hedge fund strategies.
SSgA's Japan Equity Market Neutral hedge fund strategy achieved a net absolute return (after fees) of 9.
Prior to Schwab, he spent nine years as a portfolio manager at Symphony Asset Management, where he managed market neutral hedge funds, developed new fund strategies and built and ran a U.
has invested in a select group of market neutral hedge funds on behalf of accredited individual and institutional investors.