State Street Global Advisors just can’t get enough of 130/30 strategies and it is banking that its investors feel the same way. Just a few months after launching the State Street Global Alpha Edge strategy, the firm is back with another 130/30 strategy, the U.K. Alpha Edge.
SsgA’s latest 130/30 offering uses quantitative portfolio techniques to select stocks and is looking to build a diversified and neutral portfolio in terms of style, capitalization and sector, according to the firm. It is aiming to outperform the FTSE All-Share Index by 4% per year over rolling three-year periods.
"The key advantage of the 130/30 approach is that it allows managers to express both their negative and positive views to enhance return while controlling risk," said Kanesh Lakhani, managing director of SSgA. "This approach is at the forefront of modern fund management practice, and we expect the strategy to be highly attractive to institutional investors."