Market neutral funds

Market neutral funds aim to deliver above market rates of return with lower risk by hedging bullish stock picks (buys) with an equivalent number of short bets (sells). On top of investing, some income is also generated from the interest earned by placing the cash proceeds of the short sales in savings accounts.

The goal is to deliver consistent returns, ranging anywhere from 3% to 6% above Treasury bills or gilts, after fees, whether the market is going up or down.

However, not all market neutral funds are lower risk. The so-called double alpha or “double whammy” approach, which leverages the portfolio using futures and options, targets twice the returns – at twice the risk.

Paul Hodges: house prices could fall 50% in 'Great Unwinding'

Merryn Somerset Webb interviews Paul Hodges about deflation, the global economy's 'Great Unwinding', and how Britain's house prices could halve.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


28 January 1896: The world's first speeding ticket

119 years ago today, motorist Walter Arnold was caught tearing through Paddock Wood in Kent at a hair-raising 8mph, and became the first driver in the world to receive a speeding ticket.