Investors discover hot, new idea; CalPERS among those pursuing different twist on shorting long-only equities.(California. Public Employees' Retirement System)

Pensions & Investments, November, 2005 by Chernoff, Joel

Byline: Joel Chernoff Money managers are adding shorting capability to long-only equity strategies, in what might turn into one of the hottest investment categories in years. Some experts think such approaches could take a hefty chunk of money away from traditional active equities. These long-short approaches predominantly go long, frequently 130% long and 30% short.

They differ from market-neutral approaches, which sometimes are referred to as long-short, but actually have equal long and short positions. They also differ from hedge-fund-type long-short strategies that, generally, don't adhere to such tight guidelines. Managers said institutional clients are champing at the bit to learn about the strategies. "I've made 10 presentations in the last four...

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