I keep seeing 130/30 funds mentioned. What does it mean? 130/30 funds have become popular with pens...
I keep seeing 130/30 funds mentioned. What does it mean? 130/30 funds have become popular with pension funds in recent times - and are tipped to become popular amongst the mainstream retail audience - as they potentially offer the ability to enhance returns by using both long and short positions. Essentially they combine a traditional portfolio of stocks - known as a "long-only" portfolio - with a 30% long/30% short portfolio, where the proceeds of selling short positions in unfavoured stocks are invested in more long positions, thus increasing the "conviction" of the portfolio. That s...
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