Managers and institutional investors believe 130/30 strategies are more than just hype, according to a survey from Terrapinn and AllAboutAlpha.com.
Of 135 institutional investors, consultants and asset managers surveyed, 62% of those surveyed agreed that 130/30 strategies were a new investment paradigm with long-term potential, not a marketing fad. Also, 16% said they have already implemented 130/30 strategies and another 26% plan to use them in the next 12 months. Sixteen percent of managers already offer 130/30 strategies and another 31% plan to introduce a strategy in the next year.
Of the investors already using 130/30s or planning to use them in the next year, 55% said they preferred quantitative strategies while 18% preferred fundamental strategies.
Terrapinn is a business media company that conducts trade exhibitions and conferences. AllAboutAlpha.com is a website providing commentary on the hedge fund industry.