Use of financial leverage by taking stocks with poor performance and shorting them. The investor then purchases stock shares that are thought to have high returns in the near future. This ratio refers to shorting stocks of up to 30 percent of the overall portfolio's value.
Related information about 130-30 strategy:
- 130-30 Strategy Definition | Investopedia
A strategy that uses financial leverage by shorting poor performing stocks and purchasing shares that are expected to have high returns. A 130-30 ratio implies ...
- 130–30 fund - Wikipedia, the free encyclopedia
(2007) argue that despite the similarities to hedge funds, a 130–30 strategy is ... Therefore, a 130–30 strategy's performance should be evaluated similar to a ...
- J.P. Morgan | 130/30 Strategies: An Alternative Source of Alpha
Given the increased focus on alpha, it is safe to say that the 130/30 strategy is not a fad, but rather a potential blueprint for a new wave of funds flow. According to ...
- Investors abandon 130/30 strategies - InvestmentNews
May 24, 2009 ... In fact, one of the main appeals of the 130/30 strategy is its ability to be used as an equity substitute and fit into an equity allocation, rather than ...
- S&P | S&P/TSX 60 130/30 Strategy | Americas
The S&P/TSX 60 130/30 Strategy Index measures the performance of an investment strategy that establishes over- and under-weight positions relative to the ...
- The 130/30 Strategy « Hedge Fund Blog | Hedge Fund Information ...
Feb 19, 2010 ... The basic concept of 130/30 strategy is quite simple, and relies on the principles of long positions and short-selling. To review; investors are ...
- Spotlight on - JP Morgan Funds
Adding a 130/30 strategy to a diversified portfolio. Investment role. Who may benefit. Investors not already exposed to large U.S. companies representing ...
- The rise and fall of the 130/30 fad
Mar 14, 2011 ... He added: “The 130/30 strategy lost favour because the vast majority ... The 130/ 30 strategy means an extra 30% long and short, so you are net ...