How would you complete the following statement: I consider 130/30 strategies to be:

a) A marketing fad
b) A new investment paradigm with long-term potential

In a recent survey of 135 institutional investors, asset managers, consultants, and service providers, 62% chose b) a new investment paradigm with long-term potential.

The survey was conducted jointly by Terrapinn, a producer of conferences on this sort of topic and AllAboutAlpha.com, which as you know, has more than a passing interest in emerging asset management ideas like this.

As regular readers of this website are aware, 130/30 (120/20, 140/40, or more generically 1X0/X0) is a hybrid strategy involving some elements of hedge funds and some elements of traditional long-only asset management.  As such, it offers what some might say is a bridge between these two, often diametrically opposed, worlds.

Click here to read a press release containing the survey highlights.  And for much more information on this topic, click here for links to over 20 postings we have written on 130/30 or click here to access our library of academic papers and PDF articles on 1X0/X0 (registration is on the house).

What follows below is a more detailed look at the survey results.  Since much of this data is presented in chart form, we have truncated this posting here to save ink.  Just click read the rest of this entry to continue.

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