Reuters
Global equity market-neutral hedge funds have lured investors as they can deliver better returns in times of global rates uncertainty and geopolitical tension than traditional stock markets. Equity market-neutral hedge funds (EMN) execute strategies that capitalise on discrepancies in stock valuations by purchasing undervalued securities and selling overvalued ones, making them less exposed to fluctuations in broader market indices. They also say these funds could also offer a hedge against market instability in the face of significant events, including the U.S. Presidential elections, global interest rate policy shifts, and concerns about an economic downturn.