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 MillionDollarMortgage.com, 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 tkdale.com
Disclaimer
This report is provided by TK Dale Wealth Management Inc. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic, investment and market analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. TK Dale Wealth Management Inc. is not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.