%0 Journal Article %A Charles Krusen %A Florian. Weber %A Robert A. Weigand %T 130/30 Funds %B The Evolution of Active Equity Investing %D 2008 %J Special Issues %P 176-185 %V 2008 %N 1 %X The authors analyze the confluence of factors contributing to the momentum in the 130/30 space, including the product's strong theoretical underpinnings and appropriateness for investors' objectives in the 21st century. They discuss quantitative and fundamental approaches to 130/30s and present evidence on product performance and fees, which will also influence the pace of adoption of active extension strategies. Aggregate performance data indicates that 130/30s have outperformed long-only portfolios by 300–350 basis points per year over the past 3–5 years. Based on these factors, we predict that 130/30s will continue evolving as a key component of investors' equity allocations and that investors are on their way to becoming as comfortable with 130/30 funds as they are with other approaches to active investing. %U https://guides.pm-research.com/content/iijspecial/2008/1/176.full.pdf