We see so many reports these days of new 130/30, 120/20, (1X0/X0) launches that we’ve essentially stopped posting them in the scrolling “alpha ticker” at the top of your screen.  Suffice to say, if your asset manager has a pulse, its probably launching or talking about launching some sort of “short extension” strategy.

But this article by Thomson IM about Investec’s new 130/30 and 120/20 funds raises an interesting question about the primary value proposition of 1X0/X0 funds.  The article is titled:

Investec launches high conviction Global Extension long/short strategy
New fund will give manager James Hand the ability to back himself and turn standard long only fund into 120/20 or 130/30 strategy

The article draws on a veritable fruit salad of alpha-centric buzzwords to describe this fund.  Most, but not all, are synonymous.  While terms like “short extension”, “130/30″, “120/20″, and “long/short” essentially mean the same thing, we don’t think such a fund necessarily involves “high conviction”.

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