Browsing: 130/30


Understanding the Limitations of Liquid Alternatives

Jul 30th, 2020 | Filed under: Retail Investing, Hedge Fund Strategies, Newly Added, Alternative Mutual Funds, 130/30, Liquid Alts, Alternative Investments in Context, Smart Beta, Hedge Funds, Liquid Alternative Investiments, Allocating to Alts

By Shana Sissel, CAIA, Spotlight Asset Group More than a decade ago the world of alternative investments witnessed hedge-fund-inspired Investment Act of 1940 (40 Act) funds appear on the scene. Much like their private alternative counterparts, liquid alternatives offer valuable diversification benefits within traditional portfolios, but it’s important to keepRead More

On Mutual Funds, Alternative Strategies, and Waterfalls

Feb 19th, 2013 | Filed under: Alternative Mutual Funds, 130/30

John Siciliano, managing director at PricewaterhouseCoopers, updated me on the state of retailization/convergence from the point of view of the mutual fund firm managements with whom he has conferred of late. Read More

Being short apparently has its benefits

May 10th, 2010 | Filed under: Retail Investing, 130/30

A new research paper suggests mutual funds that adopt hedge fund-like strategies were aided by their short positions - especially during the financial crisis.Read More

130/30 once had “cool factor” now has fleas?

May 20th, 2009 | Filed under: 130/30

Some say short extension funds are now dogs. Some say they're still cool. We say they're cool dogs... Read More

New data leaves 130/30 brouhaha unresolved

Apr 21st, 2009 | Filed under: 130/30

Some new research from Morningstar shows that 130/30 has performed exactly as expected by its proponents. In aggregate, it has produced approximately zero additional alpha.Read More

Look what’s coming back now

Feb 10th, 2009 | Filed under: Alternative Beta & Hedge Fund Replication, 130/30

After being labeled "faddish" and "silly" and being derided as a waste of time last year, short extension and hedge fund replication strategies returned to the news cycle this week.Read More

Exclusive results from our second annual 130/30 poll: Despite recent distractions, underlying interest remains

Nov 18th, 2008 | Filed under: 130/30

What ever happened to 130/30, 2007's "it" strategy? Well according to our exclusive survey it may have simply gone underground for a while. A majority of respondents still told us it represents a "new investment paradigm."Read More

130/30 funds: So much for $2 trillion by 2010…

Oct 7th, 2008 | Filed under: 130/30

Forecasts for the 130/30 sector have been dramatically downsized recently. But how much of this reassessment is the result of short term factors and how much is a result of fundamental questions about 1X0/X0 strategies?Read More

130/30 Not yet shining in Land of the Rising Sun

Aug 6th, 2008 | Filed under: 130/30

Apparently, 130/30 hasn't yet dawned on Japanese institutional investors. Read More

130/30 bull run still has some legs: S&P

Jun 24th, 2008 | Filed under: 130/30

Hedge Funds Review reports that S&P is telling clients that 130/30 is “strategy to watch in 2009” (no word on what to watch now or for the next six months – but it’s an ugly year anyway). Taking a page from Andrew Lo, co-author of the recent academic paper “130/30: The NewRead More

130/30 rationale, value, and “myths” covered in newly released slideware

Jun 8th, 2008 | Filed under: 130/30

Pensions & Investments hosted a tri-city 130/30 road show last month. The slides, released last week, contain some useful information.Read More

Is an “integrated” 130/30 portfolio always better than a “combined” one?

Jun 5th, 2008 | Filed under: 130/30

Is 130/30 the same as "100" (an ETF) plus "30/30" (a market neutral fund)? On the surface it seems so, but research for and against this proposition is adding confusion.Read More

One more 130/30 survey to add to the pile…

May 31st, 2008 | Filed under: 130/30

In a follow-up from a posting last week, Terrapinn’s Quant Invest 2008 folks in London just completed a survey of the institutional investment intentions of 120 pensions, endowments, insurance companies and family offices.  Right in the middle at 63% is, you guessed it, 130/30…

New 130/30 and “hedge fund replication” mandates bridge gap between alts and skeptical pensions

May 20th, 2008 | Filed under: Hedge Fund Industry Trends, Alternative Beta & Hedge Fund Replication, 130/30

In another big win for emerging alpha-centric strategies, part of Sweden's national pension has bought into "hedge fund replication". What's really behind the decision? Read More

A review of recent 130/30 surveys

May 19th, 2008 | Filed under: 130/30

So is 130/30 the "New Coke" of asset management? Another recent survey - one of several over the past year that we recap at AAA today - suggests "no". Read More

130/30 a “silly gimmick” or a ($3b) “important new mandate”?

May 19th, 2008 | Filed under: 130/30

Doug Kass of Seabreeze Investment Management, a veteran short manager and market commentator sure isn’t sold on 130/30.   The manager of $200 million of short positions tells Barron’s this week: “These funds are a silly gimmick and their half-life will be short. Nearly every long/short manager thinks he is equally facile onRead More

Report: “Exposure yardsticks may provide little insight about a fund’s alpha potential”

May 15th, 2008 | Filed under: CAPM / Alpha Theory, 130/30

Simply adding a "short-extension" to a fund doesn't necessarily pave the way for alpha generation says a Morgan Stanley report available here at AAA. Read More

Report says hedge funds, portable alpha and 130/30 all leading to (financial) climate change

May 5th, 2008 | Filed under: Hedge Fund Industry Trends, 130/30

Last year, we published a couple of articles on the somewhat Malthusian possibility of a global shortage of stocks available for borrowing. (“A Shortage of Shorts?”, “The Arms Merchants of 130/30“, “Is There a Capacity Constraint Facing 130/30 Strategies?”). Although the 130/30 market has grown since then, it remains in theRead More

Alternative Viewpoints: Survey of hedge fund professionals finds 130/30 “minor discussion within larger context”

May 4th, 2008 | Filed under: 130/30, CAIA Alternative Viewpoints

Several surveys have probed investors and managers about 130/30. But a new poll of nearly 500 alternative investment professionals contains some new insights. Read More

1X0/X0 and the hunt for African alpha

May 1st, 2008 | Filed under: 130/30

South Africa seems to be getting a lot of play recently - in part due to its position as the world's Fort Knox. But is there alpha in Africa? One reader says "yes!"Read More

After launching 130/30 index, S&P says best yardstick is actually a long-only index

Apr 29th, 2008 | Filed under: 130/30

A new paper by S&P says the best benchmark for 130/30 managers is a long-only index. We agree, and wonder what the S&P 130/30 index people think?Read More

130/30 Manager: Don’t call us quants

Apr 28th, 2008 | Filed under: 130/30

In a quick addendum to yesterday’s posting on the growth of fundamental 130/30 strategies, here is an example of one company that aims to distance itself from the pure 130/30 quants by adding an “intuitive” element to quantitative decision making. BNY Mellon Asset Management launched a 130/30 fund for European investors a couple ofRead More

The new face of 130/30?

Apr 27th, 2008 | Filed under: 130/30

As fundamental 130/30 strategies continue to grow, it is becoming more and more apparent that 130/30 is just an approach, not a distinct strategy.Read More

Media turns hostile: 130/30 now “dubious” “overblown” “faddish” “hype”

Apr 21st, 2008 | Filed under: Media Coverage of Hedge Funds, 130/30

A widely-syndicated column about the 130/30 "fad" misses the mark and sets the stage for years of public confusion regarding short-extension strategies.Read More

130/30 in the 1930s

Apr 13th, 2008 | Filed under: 130/30

Ever wonder how 130/30 strategies would have performed during the Great Depression? Read More

Research says shorting ETFs in a 1X0/X0 portfolio holds unique benefits

Apr 7th, 2008 | Filed under: 130/30

When short-selling ideas are in short supply, hedge fund managers can always short ETFs. Problem is, that provides no value-add. Or does it?Read More

In parliamentary-style debate 130/30 compared to “Cabbage Patch Kid”, “Roger Clemens”, and an “old pickup truck”

Mar 27th, 2008 | Filed under: 130/30

AIMA hosted a spirited parliamentary-style debate on 130/30 this week. The combatants: Watson Wyatt and TD Asset Management.Read More

Portable alpha demoted to “low opportunity” in new survey of consultants

Mar 25th, 2008 | Filed under: Portable Alpha & Alpha/Beta Separation, 130/30

A new survey of investment consultants reveals a significant split between the views of large and small players. Read More

130/30: Nature or Nurture?

Mar 24th, 2008 | Filed under: 130/30

Studies of twins often provide insight into the importance of genetics vs. environment. Turns out, the same could be true for 130/30 funds. Read More

Start your alpha engines, “the race is on”

Mar 23rd, 2008 | Filed under: 130/30

Merrill Lynch says "the race to fund manager heaven is in full swing". What will they find there? Simultaneously higher volumes and margins.Read More

Dow Jones joins 130/30 index parade

Mar 16th, 2008 | Filed under: 130/30

Dow Jones has joined Credit Suisse and S&P in the 130/30 index march. But a closer look reveals the Dow Jones entry is fundamentally different.Read More

Alpha-centric Newsreel

Mar 14th, 2008 | Filed under: Hedge Fund Industry Trends, Performance, Analytics & Metrics, Alternative Beta & Hedge Fund Replication, 130/30

Here is a sample of the news stories we didn’t get a chance to explore in detail this week.  As usual, all of them can be found on the Alpha-ticker above or in the news items section of (free registration may be required for a few of these). MorganRead More

Manager: “We would look at short extension funds for the next big mutual fund scandal”

Mar 13th, 2008 | Filed under: 130/30

Not everyone is a fan of 130/30. One manager says so-called short rebates represent a conflict of interest for "bonus hungry executives" at some firms.Read More

CIO of the North Dakota State Investment Board on why he chose 130/30

Feb 27th, 2008 | Filed under: 130/30

Guest contributor Steve Cochrane, the CIO at the North Dakota State Retirement Scheme, tells how and why he brought 130/30 to the Flickertail State.Read More

130/30 has “opened up serious questions” for brokers and custodians: report

Feb 13th, 2008 | Filed under: 130/30

Some say 130/30 is a whole new ball game for managers, prime brokers and custodians.Read More

2007 data suggests 130/30 outperforms

Jan 29th, 2008 | Filed under: 130/30, Fees

Data hot off the press suggests 130/30 funds have out-performed the market for the 5th year running - with higher fees.Read More

The difference between retail and institutional investors

Jan 24th, 2008 | Filed under: 130/30

A recent article about 130/30 mutual funds shows why mutual fund investors tend to perform worse than mutual funds themselves - performance chasing.Read More

Reality Check: “130/30” and “quant” not synonymous

Jan 23rd, 2008 | Filed under: 130/30

Here's a great example of how headline writers hold all the cards...Read More

130/30 Experts: pick your compensation… “attractive”, “competitive”, or “outstanding”

Jan 22nd, 2008 | Filed under: Portable Alpha & Alpha/Beta Separation, 130/30

Three job postings reveal that 130/30 is as much about sales and education as it is about investing.Read More

130/30 Primary: Merrill 130/30 poll corroborates earlier polling, but also finds some new surprises

Jan 14th, 2008 | Filed under: 130/30

Merrill Lynch's new 130/30 polling contains some surprising findings about exactly who is most smitten with 130/30, and how they plan to invest - and not just in South Carolina or Nevada.Read More