Market Neutral

Market neutral is an investment strategy designed to reduce risk by balancing positions so that overall market movements have minimal impact on returns. It involves holding both long positions (buying undervalued assets expecting rise) and short positions (selling overvalued assets expecting decline) in equal measure. This approach aims to generate profit through selecting investments based on their individual merits rather than overall market trends, thereby protecting the portfolio from broad market swings. Essentially, market neutral strategies focus on alpha—earning returns through skillful trading—while minimizing exposure to the market's ups and downs.