130/30 Not So Alternative |
Date: Thursday, October 11, 2007
Author: Benefits Canada
A 130/30 strategy shouldn't be considered to be an alternative investment, according to a roundtable discussion yesterday at the Hedge Funds World Canada 2007 conference in Toronto.
It’s a substitute for a traditional investment with a new technique, said Kevin LeBlanc, managing director, TD Asset Management Inc. He added that it is a substitute for long-only managers and should be thought of that way.
A 130/30 strategy is essentially an equity strategy that invests 130% of its assets in long positions while 30% is sold short.
LeBlanc also said that the only thing this strategy has in common with hedge funds is shorting and unlike hedge funds, 130/30 won’t bury the beta.
Click here to read The Long and the Short of It, which provides an introduction to 130/30 strategies. http://www.benefitscanada.com/investments/alternative/article.jsp?content=20070829_101654_4860
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