PT  - JOURNAL ARTICLE
AU  - Charles Krusen
AU  - Florian. Weber
AU  - Robert A. Weigand
TI  - 130/30 Funds
DP  - 2008 Jun 20
TA  - Special Issues
PG  - 176--185
VI  - 2008
IP  - 1
4099  - https://pm-research.com/content/2008/1/176.short
4100  - https://pm-research.com/content/2008/1/176.full
AB  - 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.