Comments on: Fidelity 130/30 http://moneyanswertree.com/archives/139/fidelity-13030/ investing, money, credit card debt, 401k, roth ira, credit cards, make money, personal finance, savings, retirement planning, free money, roth ira contribution, financial advice, free financial advice, online financial advice, savings account, money market, roth ira rules Mon, 12 Mar 2012 18:29:40 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: corporate business credit card http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-1615 corporate business credit card Fri, 25 Jun 2010 04:04:35 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-1615 sweet page! I've truly appreciated it! sweet page! I’ve truly appreciated it!

]]> By: sergik12 http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-386 sergik12 Fri, 11 Apr 2008 17:42:10 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-386 MDH good point, there is really no down side protection. You are just taking a bet that your worst rated stocks will under perform and using the proceeds from that bet to make a bet on your best rated stocks. MDH good point, there is really no down side protection. You are just taking a bet that your worst rated stocks will under perform and using the proceeds from that bet to make a bet on your best rated stocks.

]]> By: sergik12 http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-385 sergik12 Fri, 11 Apr 2008 17:38:06 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-385 My company has been running a 130/30 for a few years now. State Street runs a huge international 130/30 fund. The 130/30 is relatively new but it is almoust the same thing as the market neutral strategy which mutual funds already run. I think the original guy who invented 130/30 is Andrew W. Lo from MIT. I went to a presentation by him on 130/30. He is a very smart guy. If you guys want to find out more about just download his paper. Here is the link: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1074622 130/30 FUND High-conviction funds, beta-one funds, short extension funds, limited-shorting funds, long-enhanced funds, active extension funds, hedge-fund lite: there is a wide range of terms for what is most frequently called 130/30. Broadly, this strategy initially invests 100% in an index, sells short 30%, and uses the proceeds from the shorts to buy an additional 30% likely to beat the benchmark. My company has been running a 130/30 for a few years now. State Street runs a huge international 130/30 fund. The 130/30 is relatively new but it is almoust the same thing as the market neutral strategy which mutual funds already run.

I think the original guy who invented 130/30 is Andrew W. Lo from MIT. I went to a presentation by him on 130/30. He is a very smart guy. If you guys want to find out more about just download his paper.

Here is the link:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1074622

130/30 FUND

High-conviction funds, beta-one funds, short extension funds, limited-shorting funds, long-enhanced funds, active extension funds, hedge-fund lite: there is a wide range of terms for what is most frequently called 130/30. Broadly, this strategy initially invests 100% in an index, sells short 30%, and uses the proceeds from the shorts to buy an additional 30% likely to beat the benchmark.

]]> By: pbucelwicz http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-383 pbucelwicz Fri, 11 Apr 2008 12:53:10 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-383 Isn't there a huge risk when shorting stocks that will under perform? You can make money off a declining stock price, but there is no limit to how much you can lose if the stock price shoots up right? Isn’t there a huge risk when shorting stocks that will under perform? You can make money off a declining stock price, but there is no limit to how much you can lose if the stock price shoots up right?

]]> By: MDH http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-380 MDH Thu, 10 Apr 2008 20:21:08 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-380 Vadim, I would be careful saying that the fund has downside protection by being able to go short...remember those short proceeds extend the long portfolio to 130%...at the end of the day your net exposure to the market remains 100% (130 long/(30) short). Vadim,

I would be careful saying that the fund has downside protection by being able to go short…remember those short proceeds extend the long portfolio to 130%…at the end of the day your net exposure to the market remains 100% (130 long/(30) short).

]]> By: vadim.vintsevsky http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-379 vadim.vintsevsky Thu, 10 Apr 2008 15:07:26 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-379 I recieved an email when it launched and I think it was earlier this week. I think this is a great fund for anybody to invest, in no matter their investment type, to diversify their portfoilo. Especially for retirment accounts for young individules I recieved an email when it launched and I think it was earlier this week. I think this is a great fund for anybody to invest, in no matter their investment type, to diversify their portfoilo. Especially for retirment accounts for young individules

]]> By: pbucelwicz http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-378 pbucelwicz Thu, 10 Apr 2008 14:24:36 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-378 I agree but I think most people who pick their mutual funds will look at what risk it has. If they are looking for growth they will be in aggressive funds. This sounds like it's an aggressive strategy that people would be willing to take. How "new" is this 130/30 fund? Where would someone invest in it. Self directed? 401k, IRA? I agree but I think most people who pick their mutual funds will look at what risk it has. If they are looking for growth they will be in aggressive funds. This sounds like it’s an aggressive strategy that people would be willing to take.

How “new” is this 130/30 fund? Where would someone invest in it. Self directed? 401k, IRA?

]]> By: vadim.vintsevsky http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-377 vadim.vintsevsky Thu, 10 Apr 2008 14:06:26 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-377 I think the only problem with that is that a lot of people put money into mutual funds for saftey reasons to diversify their protfolios. If they start using alternative stategies they get that much riskiers. But I like having specific stategies like the 130/30. I think the only problem with that is that a lot of people put money into mutual funds for saftey reasons to diversify their protfolios. If they start using alternative stategies they get that much riskiers. But I like having specific stategies like the 130/30.

]]> By: pbucelwicz http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-376 pbucelwicz Thu, 10 Apr 2008 13:36:45 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-376 Right, I think they should be allowed to do what ever they want to make money, as long as the share holders know all the risks involved. I know shorting is used at corporate investing companies. Right, I think they should be allowed to do what ever they want to make money, as long as the share holders know all the risks involved. I know shorting is used at corporate investing companies.

]]> By: vadim.vintsevsky http://moneyanswertree.com/archives/139/fidelity-13030/comment-page-1/#comment-375 vadim.vintsevsky Thu, 10 Apr 2008 13:31:33 +0000 http://moneyanswertree.com/archives/139/fidelity-13030/#comment-375 Exactly. I really like the idea, allows the mutual fund to kind of protect itself from a market drop. I am wondering if the SEC rules are going to get more relaxed to the point where they can start shorting alot and using alternative investment stategies more. Exactly. I really like the idea, allows the mutual fund to kind of protect itself from a market drop. I am wondering if the SEC rules are going to get more relaxed to the point where they can start shorting alot and using alternative investment stategies more.

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