Skandia Investment Management (SIML) is preparing for the launch of an absolute return best ideas fund which would allow its managers to long and short stocks.
However, it is keen to stress the product will not be a 130/30 style fund and instead will offer something different to the market. Popular in the United States, a 130/30 fund is structured with 100% of the value in a long only portfolio and 30% invested in a portfolio which shorts stocks. SIML’s new fund follows the launch of the Global and UK Best Ideas funds which have already taken £700m. Like the other funds, there will be 100 stocks in the new portfolio chosen by 10 fund managers. Unlike the other funds, managers will be able to short stocks if they wish. This will give them more ...
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