Market Neutral
A strategy undertaken by a person or fund attempting to profit from the current direction of the market. A person using the strategy will take both long and short positions at the same time.
Investopedia Commentary
Managers who hold a market neutral position are able to exploit any momentum in the market. Hedge funds commonly take a market neutral position as they are focused on absolute return as opposed to relative return.
Related Links
Finding Profit in Pairs
Introduction To Hedge Funds - Part One
Introduction To Hedge Funds - Part Two
Taking A Look Behind Hedge Funds
See also: Absolute Return, Hedge Fund, Long, Relative Return, Short