March 5, 2009
Last time, we examined how market-neutral hedge funds “hedge” market risk with offsetting long and short positions. We looked at market-neutral equity investing in particular. Investment professionals who hold jobs as market-neutral managers use other securities to hedge against market risk as well. Bond hedgers try to remove the effect of broad market moves from […]
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March 3, 2009
Market-neutral hedge funds are close to the true definition of a hedge fund, in that they “hedge” market risk with offsetting long and short positions. A market-neutral hedge fund manager, for example, will take long positions in a company’s stock that he thinks is undervalued, and take short positions in stocks that he thinks are overvalued. The […]
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