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 active investing
An approach to managing a portfolio that entails trading for the purpose of enhancing returns.
arbitrage
A transaction which generates a risk-free profit.
directional strategy
A trading or investment strategy that entails taking net long or short
positions in a market.
efficient market
hypothesis A financial theory that markets are efficient in the sense that
prices reflect all available information.
hedge
fund A largely unregulated investment fund that specializes in
taking leveraged speculative positions.
hedging and diversification is an article that discusses the
diversification effects of an overlay strategy.
investment management
The process of investing a portfolio on an ongoing basis.
leverage Debt financing or anything that can similarly magnify the risk
and reward of an investment.
market neutral
strategy Speculative trading strategy that seeks to exploit relative mispricings
between instruments while avoiding systematic risk.
market risk Exposure to the uncertain market value of a portfolio. |
