Old Mutual chief urges caution on 130/30 funds

Investors need to thoroughly research the growing range of 130/30 funds, Old Mutual chief investor o...

Investors need to thoroughly research the growing range of 130/30 funds, Old Mutual chief investor office Eoin Murray has urged. Murray said specialist skills are required to manage the long/short funds and warned clients to be wary of choosing managers who are used to running long-only portfolios. “Investors need to ensure the manager has true alpha identification skills and can deal with the risk framework and the prime brokerage aspects,” he said. “We would not encourage investors to be a guinea pig for a manager who is experiencing shorting for the first time.” Murray delivered hi...