A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

N

Naked long

Refers to a directional long position that is not hedged.

Naked short

Refers to a directional short position that is not hedged.

NASDAQ (National Association of Securities Dealers Automatic Quotation System)

An index and electronic quotation system that provides price quotations to market participants about companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology industries. About 3300 companies trade on the NASDAQ.

NAV (net asset value)

The total value of the fund's assets less liabilities. Equal to the closing market value of all securities within a portfolio plus all other assets, subtracting all liabilities, and then dividing the result by the total number of shares outstanding.

Net exposure

The percentage of a fund that is currently net invested in the market. It is calculated as the difference between the long and the short positions. For example, if a fund is 100 per cent long and 25 per cent short, then the fund is 75 per cent net long.

Net long

A portfolio with long exposure that exceeds short exposure.

Net rate of return

Measures a fund's return net of all fees and expenses.

Net short

A portfolio with short exposure that exceeds long exposure.

Non-cyclicals

Defines stocks in industries that face constant demand. For example, the health care industry.

Non-directional

Non-directional strategies aim to profit from fully or partially hedged positions rather than making directional bets on securities. Non-directional strategies like most arbitrage funds tend to have a low correlation to traditional assets and to directional hedge funds.