I heard about a certain investment strategy called the 130 30 long short strategy, but I'm not quite sure what it entails. Could someone explain what this strategy is and how it works in simple terms?
7 answers
Leonardo
Fri Nov 29 2024
The 130/30 investment strategy involves a unique approach to portfolio management.
InfinityVoyager
Fri Nov 29 2024
The manager initiates by purchasing $100 worth of equities. This forms the core long position in the portfolio.
Chiara
Fri Nov 29 2024
Subsequently, the manager shorts $30 worth of equities. This action creates a short position that serves as a hedge against potential losses in the long portfolio.
EthereumElite
Fri Nov 29 2024
After establishing these positions, the portfolio's structure becomes $100 long and $30 short. This setup aims to balance risk and enhance returns.
mia_harrison_painter
Thu Nov 28 2024
The proceeds from shorting the $30 worth of equities are then utilized strategically.