Careful research required when buying into 130/30 products

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Investors need to research the growing range of 130/30 funds, Old Mutual chief investment officer Eo...

Investors need to research the growing range of 130/30 funds, Old Mutual chief investment officer Eoin Murray has urged. Murray said specialist skills are required to manage long/short funds and warned clients to be wary of choosing managers 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." He added demand has come from pension fun...