RT Journal Article
SR Electronic
T1 Eight Principles of Effective 130/30 Investing
JF Special Issues
FD Institutional Investor Journals
SP 137
OP 141
VO 2008
IS 1
A1 David. Kovacs
A1 Christopher K. McHugh
A1 Robert E. Turner
YR 2008
UL https://pm-research.com/content/2008/1/137.abstract
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.