%0 Journal Article %A David. Kovacs %A Christopher K. McHugh %A Robert E. Turner %T Eight Principles of Effective 130/30 Investing %D 2008 %J Special Issues %P 137-141 %V 2008 %N 1 %X 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. %U https://guides.pm-research.com/content/iijspecial/2008/1/137.full.pdf