130/30 trend viewed with caution by industry

Fund buyers interested in latest raft of products although many will look for managers and groups with previous shorting experience

As UK investment houses prepare to offer investors a range of 130/30 funds, advisers and multi-managers are casting a careful eye over the latest industry trend. Threadneedle, JPMorgan, F&C, Resolution and UBS have all recently announced plans to launch 130/130 funds, which claim to give higher alpha returns than long-only vehicles with only a minimal increase in risk. UBS recently gained FSA approval for its US 130/30 Equity offering, with US-based fund manager Tom Digenan in London as part of the marketing drive. Digenan said the long portfolio is like a typical equity fund, where he a...