TY - JOUR T1 - Long-Only: <em>The Natural Benchmark Choice for 130/30</em> JF - The Journal of Portfolio Management SP - 48 LP - 50 DO - 10.3905/JPM.2009.35.3.048 VL - 35 IS - 3 AU - Robert J Waid Y1 - 2009/04/30 UR - https://pm-research.com/content/35/3/48.abstract N2 - Controversy surrounds the choice of a proper benchmark for short-extension investment strategies, such as a 130/30 strategy. Because these strategies are compared to hedge funds and have significant implementation differences compared to long-only strategies, peer groups or even a 130/30 index have been suggested as the appropriate benchmark. The author argues that a short-extension investment strategy is not a separate asset class and it competes for the same investment assets as a long-only strategy; thus, a short-extension investment strategy requires a long-only benchmark—rather than a unique benchmark—to measure manager skill.TOPICS: Accounting and ratio analysis, equity portfolio management, retirement investing ER -