Editing Hedge fund (section)

===Relative value===
{{Main|Relative value (economics)}}
Relative value arbitrage strategies take advantage of relative discrepancies in price between securities. The price discrepancy can occur due to mispricing of securities compared to related securities, the [[Underlying|underlying security]] or the market overall. Hedge fund managers can use various types of analysis to identify price discrepancies in securities, including mathematical, [[Technical analysis|technical]], or [[Fundamental analysis|fundamental]] techniques.<ref>{{cite web |url=http://www.barclayhedge.com/research/definitions/Relative-Value-Arbitrage-definition.html |title=Relative Value Arbitrage definition |publisher=BarclayHedge Ltd. |access-date=20 March 2011 |archive-url=https://web.archive.org/web/20110225193036/http://www.barclayhedge.com/research/definitions/Relative-Value-Arbitrage-definition.html |archive-date=25 February 2011 |url-status=live |df=dmy-all }}</ref> Relative value is often used as a synonym for [[market neutral]], as strategies in this category typically have very little or no directional market exposure to the market as a whole.<ref>{{cite book |title=Absolute Returns: the risks and opportunities of hedge fund investing |first=Alexander |last=Ineichen |year=2002 |publisher=John Wiley & Sons |isbn=978-0-471-25120-0 |page=[https://archive.org/details/absolutereturnsr0000inei/page/181 181] |url=https://archive.org/details/absolutereturnsr0000inei/page/181 }}</ref> Other relative value sub-strategies include:

*[[Fixed income arbitrage]]: exploit pricing inefficiencies between related fixed income securities.
*[[Equity market neutral]]: exploit differences in stock prices by being [[Long (finance)|long]] and [[Short (finance)|short]] in stocks within the same sector, industry, market capitalization, country, which also creates a hedge against broader market factors.
*[[Convertible arbitrage]]: exploit pricing inefficiencies between [[Convertible security|convertible securities]] and the corresponding [[stock]]s.
*Asset-backed securities (fixed-income asset-backed): [[fixed income arbitrage]] strategy using [[Asset-backed security|asset-backed securities]].
*Credit long/short: the same as long/short equity, but in [[credit market]]s instead of equity markets.
*[[Statistical arbitrage]]: identifying pricing inefficiencies between securities through mathematical modelling techniques
*[[Volatility arbitrage]]: exploit the change in [[volatility (finance)|volatility]], instead of the change in price.
*Yield alternatives: non-[[fixed income arbitrage]] strategies based on the yield, instead of the price.
*Regulatory arbitrage: exploit regulatory differences between two or more markets.
* [[Risk arbitrage]]: exploit market discrepancies between acquisition price and stock price.
*[[Value investing]]: buying securities that appear underpriced by some form of fundamental analysis.