FTFM The arrival of short extension, or 130/30, funds on the investment scene in recent years has excited significant attention. The funds enhance a long-only manager’s performance potential by taking negative as well as positive views on the market, in theory providing a better risk/return outcome for investors.
Merrill Lynch last autumn estimated that $75bn (£37bn, €53bn) was invested in 130/30 funds, predominantly on behalf of pension funds. It reckoned the market could reach $1,000bn in the next five years.
