130/30 Shorting Strategy - "Mutual Funds Take ‘Short’ Cut To HF Strat"

Discussion in 'Professional Trading' started by OddTrader, Oct 17, 2006.

  1. Q
    http://www.dailyii.com/article.asp?ArticleID=1080644&LS=EMS109389

    Mutual Funds Take ‘Short’ Cut To HF Strat
    10/16/06
    DailyII.com

    Mutual funds have – without much success – been encroaching on hedge fund territory for some time. Increasingly, that includes so-called 130/30 shorting strategies, The Wall Street Journal reports. ING Funds, UBS Global Asset Management and Deutsche Bank Asset Management have launched 130/30 funds, and BlackRock, Mellon Equity Associates and State Street Global Advisors and investigating it. According to Morgan Stanley Prime Brokerage, $35 billion – out of the combined $10.5 trillion in mutual funds and hedge funds – is in the strategy, and the Journal says hedge funds aren’t ceding the territory to their more traditional brethren. D.E. Shaw Investment Management has recently launched a fund employing the strategy as well.

    UQ

    :confused:
     
  2. wondering, what's the basic strat that allows mutuals to short?
     
  3. I don't know - no clues.
     
  4. hey man... remembered you had a question abt iShares short interest data etc... just bumped into this (do a search)... hope its useful... cheers
     
  5. What does 130/30 mean?
     
  6. H2O

    H2O



    “130/30” funds – the 130 representing a 130 per cent long position, using leverage, partially hedged by a 30 per cent short position.