Cash Neutral

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Dictionary Says

Definition of 'Cash Neutral'

An investment strategy strategy that requires no net cash in order to enter perform the transaction. In general, cash neutral strategies require simultaneous buying and (short) selling of instruments. These strategies are popular with hedge funds, since they do not require money to be tied up in order to earn returns.
Investopedia Says

Investopedia explains 'Cash Neutral'

The most common cash neutral technique is the "market neutral" strategy. In this strategy, overvalued instruments are sold short while undervalued instruments are bought. Investable funds are split approximately 50% into short selling and buying so that, all else being equal, the portfolio value should not fluctuate based on overall market movements. Since investable funds are split equally, the cash provided from short selling offsets the cash required to buy instruments. Thus, there is no net cash flow from this initiating this strategy.
Search results for

'Cash Neutral'

  • Sonic Stuck In Neutral

    http://stocks.investopedia.com/stock-analysis/2012/Sonic-Stuck-In-Neutral-SONC-WEN-CMG-MCD0106.aspx
    ... Sonic Stuck In Neutral. ... Management detailed estimated free cash flow production of
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  • Making Sense Of Cash And Shorts

    http://stocks.investopedia.com/stock-analysis/2008/Making_Sense_Of_Cash_And_Shorts_TFSMX_WASAX_VMNFX.aspx
    ... still interested in equity exposure hedged against short or cash positions should ...
    By Email. Vanguards Long and Short The Vanguard Market Neutral Investor Fund ...

  • Getting Positive Results With Market-Neutral Funds

    http://www.investopedia.com/articles/mutualfunds/09/market-neutral-funds.asp
    ... to raise cash, regardless of fundamentals. (Learn to use fundamentals to your advantage
    in Fundamental Analysis For Traders.) Conclusion While market-neutral ...

  • CFA Level 1 Study Guide - Derivatives - Effect of Cash Flows on ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/effect-cash-flows-put-call-parity-lower-bounds.asp
    ... 6.18 Revenue Recognition Effects on Cash Flows and Financial Ratios; 6.19
    The Cash Flow Statement; 6.20 Cash Flow Statement Basics; ...

  • Banking On Merger Mania

    http://stocks.investopedia.com/stock-analysis/2010/Banking-On-Merger-Mania-CSMA-MNA-IVE-IJJ1025.aspx
    ... stock valuations and large cash hordes, merger mania has returned to the markets.
    As more investors look for alternatives to stay market neutral and protect ...

  • How To Invest Like A Hedge Fund

    http://www.investopedia.com/articles/mutualfund/08/hedge-fund-invest.asp
    ... SEE: A Brief History Of The Hedge Fund.) Cash Flow Is King Hedge funds can ... Others
    still may aim to be market neutral and profit in any environment, or employ ...

  • Is RIMM Losing The War?

    http://stocks.investopedia.com/stock-analysis/2010/Is-RIMM-Losing-The-War-RIMM-AAPL-GOOG-NOK-MOT-VZ-MRVL1220.aspx
    ... In fact, go a step further and assume no free cash flow growth again (at all) and
    a market-neutral discount rate, and it would seem that there is maybe $5 or ...

  • Computer Sciences – Uncertain Value With Certain Problems

    http://stocks.investopedia.com/stock-analysis/2011/Computer-Sciences--Uncertain-Value-With-Certain-Problems-CSC-IBM-ACN-CTSH-DELL-XRX-CACI1114.aspx
    ... leverage its position as one of the largest platform-neutral service providers. ... low
    revenue growth projections, and historically average free cash flow margins ...

  • Schwab's Current Troubles Mask A Bright Future

    http://stocks.investopedia.com/stock-analysis/2009/Schwabs-Current-Troubles-Mask-A-Bright-Future-SCHW1021.aspx
    ... dollars are going into those new accounts as many new investors remained focused
    on paying down debt with available cash. Analyst Generally Neutral As Stock ...

  • Upside Potential From Black Box

    http://stocks.investopedia.com/stock-analysis/2011/Upside-Potential-From-Black-Box-BBOX-ALU-SI-PLCM-SI-ACN-VZ0615.aspx
    ... For more, see Free Cash Flow: Free, But Not Always Easy.). ... Diversified Systems and
    Clients Black Box remains neutral over the communications systems its clients ...

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