One of the things that characterises sophisticated investors is the way they use investment strategies that are designed to produce returns uncorrelated with equity market returns.

These strategies include market neutral strategies, which are designed to profit from both increasing and decreasing prices in one or more markets, while also avoiding systemic market risk. They work by taking long and short positions in different companies.

Market neutral strategies are especially useful when solid equity and bond market returns are getting harder to attain.

Our latest Whitepaper looks at market neutral strategies, and why they’re worth considering as part of your overall investment strategy.

In particular, it discusses how adding a market neutral strategy to a portfolio of cash and equities can provide diversification benefits without sacrificing returns, and potentially allows an investor to significantly increase wealth over time without increasing risk.