By: 130 30 strategy benchmark opportunity set

130 30 strategy benchmark opportunity set — Thu, 13 May 2010 03:22:15 +0000

[...] Well, really the benchmark of ANY strategy is its opportunity set but I thought I would use the 130/30 funds as an example. I have written before about what 130/30 funds are, and how the appropriate benchmark for such a strategy would be the plain van…. [...]

By: The Deal Sleuth

The Deal Sleuth — Sat, 24 May 2008 05:31:46 +0000

Note that the 130/30 manager can not utilize all the proceeds of the short sale to buy longs, because the broker must retain at least some of it. As a result, the manager must borrow to acquire the equivalent amount of stock that was sold short. The spread between the borrowing cost and the short rebate can affect returns quite significantly, as
this post by The Deal Sleuth shows.

Comments on: How Do You Benchmark a 130/30 Mutual Fund?

By: 130 30 strategy benchmark opportunity set

By: The Deal Sleuth