PT  - JOURNAL ARTICLE
AU  - Robert J Waid
TI  - Long-Only: <em>The Natural Benchmark Choice for 130/30</em>
AID  - 10.3905/JPM.2009.35.3.048
DP  - 2009 Apr 30
TA  - The Journal of Portfolio Management
PG  - 48--50
VI  - 35
IP  - 3
4099  - https://pm-research.com/content/35/3/48.short
4100  - https://pm-research.com/content/35/3/48.full
AB  - 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