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What is a 130-30 Strategy?

Want to manage your own retail portfolio using a tried-and-true method that institutional investors rely on? It’s possible using the 130-30 strategy. What is a 130-30 strategy? Also called a “long-short strategy,” it involves using leverage from a short position to fund stronger gains in a position that’s expected to outperform the market. The ratio of 130-30 breaks down based on your investment allocation (see below).
Here’s what you need to know about the 130-30 strategy, how it works and why it works. It’s a strategy you can deploy in your own portfolio with very little experience. Moreover, it’s a …read more […]