RT Journal Article
SR Electronic
T1 Loosening the Long-Only Constraint
JF Special Issues
FD Institutional Investor Journals
SP 142
OP 147
VO 2008
IS 1
A1 Will Cazalet
YR 2008
UL https://pm-research.com/content/2008/1/142.abstract
AB Active managers constantly seek ways to add alpha to their portfolios to boost performance. Almost invariably, they do so against a backdrop of constraints imposed upon them by investors and their advisers. These constraints typically include limits on how over-or underweight a manager's portfolio may be in a particular stock, sector, or country, as well as market capitalization or beta neutrality. But one of the most significant constraints imposed on many managers today is that which precludes them from holding short positions in their portfolio; relaxing this constraint, even by a modest amount, can have a significant effect on overall portfolio performance.