The term “market-neutral investing” refers to the use of a group of investment strategies intended to neutralize certain market risks by taking offsetting long and short positionsin related instruments.At fi rst glance, these strategies seem to be quite different. But all market-neutral strategies derive returns from the relationship between long and short elements of the portfolio, whether that relationship occurs within the portfolio or within the instruments themselves. These strategies look for investments that are not correlated. Correlatedinvestments offer similar returns under similar market conditions. Market-neutral strategies look for pairs of investments that behave differently under a given set of market conditions.