Market Neutral Investments

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Market Neutral Investments
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What is Stock Pickers?
Stock pickers should take on new methodologies
and trading systems to play efficiently in the
global markets. When you go beyond the tradition,
you have always something new to show in the
market. Such novelties comes with research. There
is a concept called market-neutral investing.
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Some One Said----------------------
Joseph G. Nicholas, founder and chairman of HFR
Group, wrote in his 2000 book Market Neutral
Investing Long/Short Hedge Fund Strategies
Market-neutral investing refers to a group of
investment strategies that seek to neutralize
certain market risks by taking offsetting long
and short positions in instruments with actual or
theoretical relationships. These approaches seek
to limit exposure to systemic changes in price
caused by shifts in macroeconomic variables or
market sentiment.
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Market-neutrality can be achieved either at the
individual instruments level or at the portfolio
level. While the strategies are very different,
both in terms of assets and methodology, they all
fall under the market-neutral umbrella.
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Equity market neutral strategy, A slightly
different but a concept for similar objective.
Its a 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 can
be an ultimate weapon for stock pickers as
finally stock picking is all that counts.
Recoveries of the short investments are done in
the long investments themselves.
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Find new ways around in investments and lead. Out
and out, stock picker's profit is most important.
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