The risk-adjusted (i.e., Beta-adjusted) outperformance or underperformance of the portfolio relative to the stock market or another chosen index.
Statistical measure of the sensitivity of a company’s stock price to the movement of a broad stock market index. For the Fund, the Adviser uses a company stock price Beta relative to the S&P 500 Index. A Beta of 1.0 means a stock generally moves up and down in proportion to the movement of the stock market. A Beta greater than 1.0 means a stock generally moves up and down more than the movement of the stock market. A Beta less than 1.0 means that a stock generally moves up and down less than the movement of the stock market.
One basis point is equal to 1/100th of 1%, or 0.01% (0.0001), 100bp=1.00%.
A measure of the value of a company calculated by dividing free cash flow by the value of the company. Free cash flow ("FCF") is the cash a company has left over after all expenses and capital expenditures (cash reinvested in the company).
Statistical measure of how two securities move in relation to one another.
These strategies employ sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between securities, select securities for purchase and sale. These can include both Factor-based and Statistical Arbitrage/Trading strategies. Equity Market Neutral Strategies typically maintain characteristic net equity market exposure no greater than 10% long or short. The HFRX EH: Equity Market Neutral Index is a made up of a subset of the funds included in the HFRI EH: Equity Market Neutral Index. The methodology used to construct the HFRX EH: Market Neutral Index requires that funds have a performance record of at least 24 months and assets greater than $50 million to be included as a constituent of the index. The HFRX EH: Market Neutral Index also requires funds to trade on a transparent basis and be open to new investors. None of these are currently requirements of the HFRI EH: Market Neutral Index.
A common benchmark for long/short market neutral hedge funds (funds traditionally only available to high net-worth accredited and institutional investors that are also "qualified clients" as defined by the SEC). More information about this index may be found at www.hedgefundresearch.com.
Equity Hedge strategies maintain positions both long and short in primarily equity and equity derivative securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. Equity Hedge managers would typically maintain at least 50% exposure, and may in some cases be substantially or entirely invested in equities, both long and short.
A type of limited partnership that is publically traded and has two types of partners, a limited partner who provides capital to the MLP and a general partner who manages the operations of the partnership.
Profitability measurement that assesses the return that an investment generates for capital contributors (i.e. Bondholders and stockholders).
Profitability measurement that calculates how many dollars of net profit a company generates with each dollar of shareholders' equity.
Unlevered metric of a company’s profits divided by its tangible assets.
Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with higher price-to-book ratios and higher forecasted growth values.
A market-capitalization weighted, large-cap index created by Frank Russell Company to measure the performance of the 1,000 largest publicly traded U.S. companies, based on total market capitalization.
Measures the performance of those Russell 1000 Index companies (the 1,000 largest publicly traded U.S. companies, based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values.
Measures the performance of the broad growth segment of the U.S. equity universe. It includes those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values.
Measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.
This Index is a market value weighted index that includes 500 stocks chosen by Standard & Poor's based on market size, industry grouping, liquidity and other factors. It is designed to be indicative of the large cap universe capturing approximately 75% coverage of U.S. equities.
Passive investment style that emphasizes the use of alternative index construction by attempting to capture investment factors or market inefficiencies in a rules based manner.
One cannot invest directly in an index.