Advisers have turned their back on poor performing 130/30 funds, which have so far failed to live up to expectations after the fanfare that followed a plethora of launches last year.
130/30 funds give 130pc exposure to long positions and 30pc to shorts; effectively leveraging the fund manager's skills. UBS, JPMorgan, F&C and Resolution are among the high profile groups that launched retail 130/30 funds last year. The funds differ in remit and invest in different markets (predominantly the UK, Europe and the US). However, all failed to deliver positive growth in six months to end May, according to Lipper, with losses between 6pc and 18pc. The funds may have been caught up in the global slowdown but, as when many of the funds were first unveiled last summer, many advise...
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