Flexible 130/30 funds

A recent change in regulation has now allowed fund managers responsible for UK domiciled vehicles to be more flexible with their investment strategies. As a result of this, we have seen the introduction of '130/30' funds into the UK fund market for the first time. Prior to this new development, fund managers either had the opportunity to run long-only portfolios or full blown long/short hedge fund strategies; the 130/30 strategy resides between the two. Traditionally, in a long-only portfolio, the manager cannot fully exploit a stock he does not like because the maximum it can be underw...