Market-Neutral Hedge Fund Strategy Builder (Conceptual Simulator)

Strategy Setup

Strategy Name (Optional):

Market-Neutral Approach (Contextual):

Notional Capital Allocated to Strategy:

This is used as a base for % calculations if applicable, or for scaling P&L.

Long Leg Name/Asset(s):

Allocation (% of Notional Capital):

Expected Annual Return:

Expected Annual Volatility:

Short Leg Name/Asset(s):

Allocation (% of Notional Capital, enter as positive):

Strategy uses this as a short position (e.g., -100%).

Asset's Expected Annual Return (if it were held long):

The strategy profits if this asset underperforms or falls.

Asset's Expected Annual Volatility:

Expected Correlation between Long & Short Leg Returns (-1 to 1):

Total Annual Transaction Costs (as % of avg. gross exposure):

Applied to (LongAlloc + ShortAlloc)/2 as % of strategy capital. This is a simplification.

Annual Cost of Shorting (Stock Borrow Fees, as % of short leg value):

Average Annual Risk-Free Rate (for Sharpe Ratio):

Strategy analysis results will appear here.