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

[OddTrader]

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

 

[Avid_Consumer]

wondering, what's the basic strat that allows mutuals to short?

 

[OddTrader]

I don't know - no clues.

 

[2cents]

Quote from Avid_Consumer:

wondering, what's the basic strat that allows mutuals to short?

hey man... remembered you had a question abt iShares short interest data etc... just bumped into this (do a search)... hope its useful... cheers

 

[OddTrader]

Probably like this:

"DOUBLE inverse ETFs"
http://www.elitetrader.com/vb/showthread.php?s=&threadid=72725

 

[Hook N. Sinker]

What does 130/30 mean?

 

[H2O]

Quote from Hook N. Sinker:

What does 130/30 mean?

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