130/30s must justify their existence

As revealed on Investment Week's front page last week, 130/30 funds are largely failing to outperfor...

As revealed on Investment Week's front page last week, 130/30 funds are largely failing to outperform their long-only peers since they started coming to market last year. The products have been a topic for this column before, with our stance that such innovation is to be applauded but must translate into outperformance. With 130/30s, the managers and groups running them also need shorting experience and lacklustre returns generated in the tough markets this year shows just how vital this is. As ever, any criticism of such short-term performance comes with the usual caveats that these ...