What Is Market Neutral Strategy?

One of the challenges of the current environment is massive data abundance. Absolute over-flow of data is the foundation of very sophisticated and modern investment approaches, often based more on technology than deep market understanding. These concepts are often very hard to explain and might be dangerous to invest in. Market Neutral Program is the systematic yet very transparent approach. There is no black-box solution involved, so we can clearly demonstrate and justify each step of the systematic investment process.

 

The Market Neutral Equity Program systematically captures positive returns from US equities, regardless of the current market environment and direction. The market-neutral approach is usually applied as a portfolio diversifier to reduce the overall market exposure of institutional allocators. Returns are often considered pure alpha with the ability to reduce volatility and increase returns. The model’s logic consists of rules that define and execute attractive non-directional trading opportunities in a market uncorrelated manner. The particular investment logic should combine two core attributes to deliver positive

performance without direct risk exposure to the equity market and fluctuations.

 

Despite our approach’s technical character, we can demonstrate the added value of each step of the investment process; this makes our Market Neutral Equity Program transparent and easily understandable.