Fidelity Investments announced the launch of the “130/30 Large Cap Fund” to help quell the hunger of retail investors and advisors and to keep up with competitors.

The 130/30 strategy allows funds to take short positions and allow investors to borrow shares to sell under the expectation that they can be bought back later at a cheaper price. It also carries a higher risk, as shorting funds amplifies gains and losses.

“Investors ... are expressing interest in funds that adopt institutional-like strategies for achieving attractive risk-adjusted returns," said Sanjiv Mirchandani, president of Fidelity Personal and Workplace Investing Growth Business.

“Fidelity has a more than 15-year record in shorting via portfolios available to institutional clients," said Keith Quinton, who will manage the fund.

Competitors Legg Mason Inc. and Vanguard have already launched their own funds that use some kind of shorting.

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