Focus Sections » 130/30 FUNDS

European fund houses are waxing lyrical about the potential of 130/30 funds, with the ability to short o­ffering enhanced performance. However, with the plethora of new products flooding the market, some private bankers may adopt a wait-and-see approach. Christine Senior reports

Stefano Pierantozzi, head of EMEA fiduciary oversight and research, at Citi unveils how investment theory developed in order to accommodate the idea of 130/30 strategies and how they can fit into the Ucits Directive. These strategies may not necessarily perform better than traditional ones, but they allow for greater freedom

Weaker equity market returns, increased plan funding needs, and demand for higher and more predictable active manager returns have led to a growing interest in alternative investment approaches. One of the most promising sources of higher alpha that is rapidly gaining appeal is ‘directional long-short’ investing, write Alexander Tavernaro, client portfolio manager, Invesco Global Structured Products Group, Frankfurt and David Wonn, client portfolio manager, Invesco Global Structured Products Group, Boston