Most people know the word hedge fund but very few actually know what the term means and even less know how the strategies work.

In this episode Trevor Dale, CFA, Founder TK Dale Wealth Management and Creator of, outlines the strategy and how it makes and loses money.

This strategy involves hedging out the market exposure and hoping to take advantage of a perceived mispricing of individual stocks.


If the market goes up or down, that should be irrelevant to the strategy and we talk about how this is possible.

You are both long and short a stock that are expected to be in the same sector or industry with similar characteristics but are valued differently for some reason.

Trevor talks about how a long position and short position and how to use them together in what’s called a pair trade to construct this market neutral strategy.

This episode is available on iTunes, Spotify, Google Play and Stitcher under the TK Dale Wealth Podcast and at