Equity market neutral is one of only a handful of hedge fund strategies to have produced positive returns for investors during the financial crisis.
These funds use long and short positions to exploit inefficiencies in the global equity markets. The aim is to manage assets in a way that is neutral to risk factors in the major markets and sectors. It is a non-directional strategy and managers aim to operate with a net market exposure of close to zero.
The term can encompass statistical arbitrage
The week on Risk.net, July 14–20, 2017Receive this by email