The first of a new wave of 130/30 long/short mutual funds are hitting the mainstream investment landscape. They are taking their cue from the institutional arena where 130/30 strategies have been a scorching hot commodity and are rolling out to clients at a record pace.

Both new mutual funds and their institutional separate accounts employ this so-called "130/30," which is also known as a short-extension or "edge" investment strategy. It entails investing 130% of assets in long equity positions, with 30% of assets shorting stocks.

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