Northern Trust launches 130/30 strategy |
Date: Wednesday, February 7, 2007
Author: Craig Sebastiano, Benefits Canada
Northern Trust Global Investments has launched a Quantitative 130/30 core equity strategy, which seeks to outperform the Russell 1000 Index.
The strategy has a goal of outperforming the index by 4% annually over a full market cycle and enables the portfolio manager to take short positions up to 30% and long positions up to 130%.
“With this strategy, institutional investors get to capture the full benefit of our research capabilities while overcoming traditional long-only inefficiencies.”
The 130/30 strategy is designed to leverage the strategy’s alpha while maintaining 100% exposure to the market.
By relaxing the long constraint, the strategy can achieve higher alpha targets without sacrificing diversification or efficiency.
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