Remember the hype surrounding 130/30 funds a few years back? Well, some have gone the way of the dinosaur and some just simply changed their name a la the MainStay 130/30 Core Fund.
At a meeting held on earlier this month, the fund’s Board of Trustees approved changing the name of the fund to MainStay U.S. Equity Opportunities Fund, effective February 28, 2013, according to a Securities and Exchange Commission filing. The fund’s mandate of taking long positions in equity securities that it believes have a high probability of providing a total return greater than the Russell 1000 Index and shorting those that it believes are likely to underperform, remains intact.
The 3-Star rated, $473 million fund was launched in June 2007 during the heyday of 130/30 funds and is managed by Harvey Fram and Mona Patni. The fund sports an expense ratio of 109 basis points. Year-to-date, the fund is up 14.79% versus S&P 500’s gain of 14.96%.