With last year’s market-wide slump, mutual funds are trying to take a play out of the hedge fund playbook. One of the more common strategies employed by hedge-like funds is market neutrality. By taking off-setting positions in equities, fixed-income securities, options, etc., managers can eliminate market risk. Market neutrality conceptually works like this: If a fund manager believes that […]
Janet Paskin of the Wall Street Journal reports that mutual funds are trying to emulate hedge funds in an attempt to satisfy average investors needs in alternative fund classes. In the past, hedge funds have been the investment country clubs for wealthy investors. The average investor had no access to hedge funds because he/she was deemed too unsophisticated to research […]