Tag Archives: Beta
Market Neutral Mutual Funds
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 […]
Building a Better Beta: Not all Beta is created equal
Most investors understand the concept of Beta, but do not appreciate that all Betas are not created equal. We’ll start with a little Beta primer. Let’s say you have two stocks, Huntington Banc (HBAN) and Invesco (IVZ), which both have a Beta of approximately 2. If the market moves 1% you would expect HBAN and IVZ to move 2%. Investors […]
