Box 1 represents a neutral return, meaning it is the benchmark for the other three boxes.

FORBES: Investment Principle Matters to Principal

Such funds throw around terms like risk parity, equity long-short, market neutral and absolute return.

FORBES: Magazine Article

Morningstar's "long-short" mutual-fund category includes market-neutral and absolute-return funds, which are designed to generate returns in any market environment, and arbitrage funds, which try to exploit market inefficiencies.

WSJ: Mutual Funds That Act Like Hedge Funds