TY - JOUR T1 - 120/20 Portfolios JF - Special Issues SP - 48 LP - 55 VL - 2008 IS - 1 AU - Soonyong Park AU - Seyi Bucknor Y1 - 2008/06/20 UR - https://pm-research.com/content/2008/1/48.abstract N2 - Extension strategies, also referred to as the 120/20 or 130/30 strategies, have emanated for the most part from the long-only managers—more specifically, from their desire to wring out greater excess returns from the existing long-only stock selection and portfolio construction processes. Quantitative firms and fundamentals-based asset management firms with sizeable central research groups have been at the forefront of the 120/20 wave. All things being equal, a rational investor should always choose a strategy that offers higher return for a unit of risk. The authors agree with the theoretical underpinning of the 120/20 strategies; therefore, they believe that 120/20 strategies merit a serious consideration by investors—a legitimate alternative to long-only equity strategies in the large capitalization arena. ER -