Growth predicted for 130/30s

Hybrid 130/30 (or 120/20) funds will explode in popularity, rising from $140bn in 2007 to nearly $2t...

Hybrid 130/30 (or 120/20) funds will explode in popularity, rising from $140bn in 2007 to nearly $2trn by 2010 according to a TABB Group study. This represents a compound growth rate of 141%. In that time, it said, actively managed US equity mutual funds will remain relatively flat at 3%. "A major change is under way at alpha-seeking firms," said Larry Tabb, founder and chief executive of TABB Group and co-author of the study Alternative Investments 2007: The Quest for Alpha with Jeromee Johnson. "They are becoming more creative, moving overseas and towards frontier markets, moving up an...