Loomis Makes 130/30 Offering

Sep 10 2007 | 10:54am ET

Loomis, Sayles is the latest asset management firm to offer a 130/30 product. The firm last month launched its Loomis Sayles Equity Research 130/30 strategy.

The new offering will take long and short positions in securities based on a two-step screening process: a quantitative screen and fundamental research and analysis, according to the firm. Its process narrows the stock selection field to 70 to 100 names, identified by their likelihood to outperform or underperform the markets.

It also uses a stop-loss measure that cuts back or eliminates any short position that rises more than 10% versus the sector from cost or the most recent low price, depending on quantitative metrics. Also, the strategy seeks long/short pair trades of similar companies.

The portfolio managers are Brian James and Maureen Depp, who are also the co-directors of the Loomis Sayles Equity Research group.

“As a performance-driven manager, a 130/30 investment strategy is a natural fit for us based on the strength of our research and analytic resources,” said James. “We believe that 130/30 equity strategies are optimal for investors seeking opportunities for enhanced returns but not wanting to take on significant risk. We have paired in-depth research with disciplined risk management to create a strategy that suits the needs of many investors seeking an alpha-generating alternative.”

Loomis, Sayles currently manages more than $115 billion in equity, fixed income and alternative strategies.


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