10 Strategies Hedge Funds Use to Make Huge Returns

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5. Equity Market Neutral

This strategy is based on avoiding all possible and unwanted sources of risk, which is seldom practical in reality. Statistical and fundamental arbitrages are the two main strategies. Statistical arbitrage is based on seeking pricing differences in equities over a period of time, aiming to make a profit on price convergence. Fundamental arbitrage invests in a certain stock considering the company’s future trail.

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