@article {Gastineau39, author = {Gary L. Gastineau}, title = {The Short Side of 130/30 Investing}, volume = {34}, number = {2}, pages = {39--52}, year = {2008}, doi = {10.3905/jpm.2008.701616}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Many long-only investment managers are looking for ways to offer 130/30 strategies and other {\textquotedblleft}enhanced long strategies{\textquotedblright} or {\textquotedblleft}constrained long-short portfolios.{\textquotedblright} Conservative portfolio managers with little or no experience in short-selling can use sector evaluations from their firms{\textquoteright} investment process to add alpha with short positions in exchange-traded funds (ETFs). While individual stock selection has the greatest potential to add value on the short side as well as on the long, differences in performance among various domestic sectors come in a close second. The dispersion in sector performance combined with some advantages of using ETFs to implement short sector positions makes sector ETFs to establish the short side of a 130/30 position a compelling choice for investment managers without fully integrated long-short stock portfolios. Some sector ETFs are easy to trade, easy to borrow, and easy to integrate as the short side of a long-short portfolio.TOPICS: Wealth management, exchange-traded funds and applications, equity portfolio management}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/34/2/39}, eprint = {https://jpm.pm-research.com/content/34/2/39.full.pdf}, journal = {The Journal of Portfolio Management} }