Managers who hold a market-neutral position are able to exploit any momentum in the market. Hedge funds commonly take a market-neutral position because they are focused on absolute as opposed to relative returns.
A market-neutral position may involve taking a 50% long, 50% short position in a particular industry, such as oil and gas, or taking the same position in the broader market.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Market neutral — An investment strategy or portfolio is considered market neutral if it seeks to entirely avoid some form of market risk, typically by hedging. In order to evaluate market neutrality, it is first necessary to specify the risk being avoided. For… … Wikipedia
market neutral — In the context of hedge funds, a style of management that has long and short equity exposure with nearly exposure on average to fluctuations in the market. However, the on average qualification is important. The risk of the longs and the shorts… … Financial and business terms
market neutral — Segnalazione che indica quando la performance di un titolo è neutrale rispetto a quella del mercato. A volte viene utilizzato nella stessa accezione il termine market performer … Glossario di economia e finanza
Market Neutral Fund — An aggressive type of mutual fund that aims to deliver superior returns by balancing bullish stock picks with bearish ones. They can also generate income from the interest proceeds of the sales of short securities. The objective of these funds is … Investment dictionary
market neutral funds — /ˌmɑ:kɪt nju:trəl fʌndz/ plural noun hedge funds not related to general market movements, but which try to find opportunities to arbitrage temporary slight changes in the relative values of particular financial assets … Dictionary of banking and finance
Equity Market Neutral — A hedge fund strategy that seeks to exploit differences in stock prices by being long and short in stocks within the same sector, industry, market capitalization, country, etc. This strategy creates a hedge against market factors. This is the… … Investment dictionary
market perform — Segnalazione che indica che la performance di un titolo è simile a quella del mercato. A volte viene utilizzato nella stessa accezione il termine market neutral … Glossario di economia e finanza
Market Post Tower — Market Post Tower, also known as the Gold Building, is a 15 story, 313,718 square foot (29,145.4 m2) building in downtown San Jose, California. Built in 1985, Market Post Tower was designed to provide a mix of office and retail space. When first… … Wikipedia
Neutral grain spirit — Gem Clear grain alcohol is a 190 proof neutral grain spirit. Neutral grain spirit (also called pure grain alcohol (PGA) or grain neutral spirit (GNS)) is a clear, colorless, flammable liquid that has been distilled from a grain based mash to a… … Wikipedia
Neutral Tandem — Established in 2003, “Neutral Tandem” , Inc. provides voice, data and video interconnection services worldwide to wireless carriers, cable companies and CLECs. Headquartered in Chicago, Neutral Tandem is a public company and traded on the NASDAQ… … Wikipedia