Jones model

Investment model developed and launched by sociologist and journalist Alfred Winslow Jones in 1949. While traditional mutual fund models took only long positions in stocks, Jones's Model, a limited partnership, combined long positions (in favored stocks) with short positions (in stocks expected to decline) in the same sector, thus insulating or "hedging" the model against market movements. The return earned by the model would depend on the manager's stock selection skills rather than on the movement of the market. The model thus targeted an absolute return rather than a relative return to the market's performance. See Long/Short equity.