Our friends over at eVestment Alliance, a major database of institutional money managers, recently provided us with some interesting 130/30 data hot off the presses for a presentation Alpha Male delivered in Europe.

Firstly, check this out.  Back-testing has shown that 130/30 funds would have performed better than their long-only analogs over the past several years (see related posting).  But does this match reality?  Unfortunately, there simply haven’t been enough funds around long enough to paint a complete picture.  However, eVestment Alliance has been collecting data from managers of institutional funds for some time now.  While the pre-2006 numbers are a little thin, annual return data shows that 130/30 funds have indeed outperformed the S&P 500 every year since they started tracking such funds (the white number shows the number of 130/30 funds tracked by eVestment Alliance).

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