Hedge funds are increasingly trying to attract assets from institutional investors, and in their quest to do so more funds are implementing 130/30 strategies, traditionally a long-only product, according to Investment Dealers' Digest, IMW's sister publication.

130/30, also known as a short extension, involves investing 130% of assets in long equity positions and 30% of assets short. Variations can be made depending on risk appetite. For example, if desired a manager could launch a 120/20 strategy, which goes 120% long and 20% short.

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