Managers defend 130/30 strategy despite 40-50% losses

Designed to bring the hedge world closer to the mainstream retail investor, the 130/30 approach has been under intense redemption pressure in the more established US market recently after poor relative returns. Many 130/30 equity vehicles available to UK investors significantly under performed their benchmarks last year, with the average fund falling by about 40%. JPMorgan Asset Management has five 130/30 strategies open to the UK market, with four launched in June 2006, just before the onset of the intense market declines. The JPM Europe 130/30 dived about 50% last year, while the Eu...