Japanese ponder offering 130/30 strategies

Large Japanese fund managers are looking to develop their own hedge-fund strategies as their local clients increase their exposure to such products. One of the most talked-about of these now are 130/30 strategies, which involve a 130% long position and a 30% short position, with the proceeds from the short helping to pay for the additional long exposure.

This mode has been described as something of a halfway house toward full-blown hedge fund investing, and the industry’s bait to entice Japanese and Australian pension funds into the long/short universe, suggests Kirstin Hill, New ...