2007 data suggests 130/30 outperforms
Jan 29th, 2008 | Filed under: 130/30, Investment Management FeesOur 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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Very interesting. I’m having a breakfast meeting with someone who wants the low down on 130/30 funds. This is a nice addition to what you have already written on the subject.
I love Envestment Alliance, they have helped me sail through at least two dozen meetings with clients in the past. Probably why they are one of the 500 fastest growing companies in America…anyways..nice post.
- Richard