标题: Relative Value Strategies [打印本页] 作者: Howd 时间: 2011-7-13 15:50 标题: Relative Value Strategies
Can someone explain to me why a hedged equity would not be considered a relative value strategy but convertible arbitrage and equity market neutral would be? To me hedged equity is long short except you're not long/short securities in the same industry like market neutral....作者: Valores 时间: 2011-7-13 15:50
include equity market neutral, convertible arbitrage, and hedged equity作者: mar350 时间: 2011-7-13 15:51
Schweser 3-day workshop question book says hedged equity is NOT relative value strategy....is it wrong?作者: justin88 时间: 2011-7-13 15:51
check your book ...作者: Zestt 时间: 2011-7-13 15:51
"Relative value, in which the manager seeks to exploit valuation discrepancies through long and short positions. This label may be used as a supercategory for, for example, equity market neutral, convertible arbitrage, and hedged equity."作者: ll11 时间: 2011-7-13 15:51
Market neutral is relative value as you hedge out the systematic component and pick weaker / stronger ones (eg you are buying bank of America selling citi). Equity long short does not necessarily hedge out systematic risk (beta can be non-zero) so technically you're not making proper relative value trades作者: justin88 时间: 2011-7-13 15:51
That's how i understood it too...thanks. I guess Schweser is wrong!
