TY - JOUR T1 - A Guide to 130/30 Portfolios JF - Special Issues SP - 16 LP - 24 VL - 2008 IS - 1 AU - Mark J.P Anson Y1 - 2008/06/20 UR - https://pm-research.com/content/2008/1/16.abstract N2 - products have grown in proliferation and popularity in the last few years—but is their status as a new wave of actively managed products deserved? This article explores the advantages of 130/30 funds over traditional long-only products. It starts with the basics of how a 130/30 portfolio is constructed. While simple in theory, there are many more moving parts for 130/30 products that both builders and investors must consider. Second, the article uses the Fundamental Law of Active Management to demonstrate mathematically why 130/30 products can be superior to traditional long-only products. It then applies the Calculus of Active Management and demonstrates in a series of graphical presentations how 130/30 products can outperform traditionally managed portfolios. Last, as a reminder of some of the problems with traditional active portfolios, is a snapshot of an existing long-only product and a clear insight into why these products often produce inferior results. ER -