PT - JOURNAL ARTICLE AU - David. Kovacs AU - Christopher K. McHugh AU - Robert E. Turner TI - Eight Principles of Effective 130/30 Investing DP - 2008 Jun 20 TA - Special Issues PG - 137--141 VI - 2008 IP - 1 4099 - https://pm-research.com/content/2008/1/137.short 4100 - https://pm-research.com/content/2008/1/137.full AB - 130/30 investing should gain institutional assets rapidly over the next five years. However, institutions must not lose sight of how the short-selling capability of 130/30 portfolios presents special opportunities and risks that can affect the performance of those portfolios for better or worse. This article discusses eight core beliefs about 130/30 investing, including the following: a 130/30 portfolio is only as good as its investment process; the flexibility of leverage can backfire if it isn't accompanied by good stock selection and effective risk-management controls; asset-capacity limits can help enhance results; and prime brokers should be carefully chosen, since they're critical to successful short selling.