PT  - JOURNAL ARTICLE
AU  - Bruce I. Jacobs
AU  - Kenneth N. Levy
TI  - Enhanced Active Equity Strategies
AID  - 10.3905/jpm.2006.628405
DP  - 2006 Apr 30
TA  - The Journal of Portfolio Management
PG  - 45--55
VI  - 32
IP  - 3
4099  - https://pm-research.com/content/32/3/45.short
4100  - https://pm-research.com/content/32/3/45.full
AB  - Enhanced active equity investing relaxes the long-only constraint by permitting short sales, while maintaining full exposure to equity market return and risk. The enhanced active equity approach is facilitated by modern prime brokerage structures that allow investors to use the proceeds from short sales to purchase long positions. Freeing equity portfolios from the long-only constraint can enhance performance by permitting meaningful underweight positions that are simply not achievable in long-only portfolios. The investor can thus more fully exploit security valuation insights.TOPICS: Portfolio construction, portfolio theory, equity portfolio management