TY - JOUR T1 - Enhanced Active Equity Strategies JF - The Journal of Portfolio Management SP - 45 LP - 55 DO - 10.3905/jpm.2006.628405 VL - 32 IS - 3 AU - Bruce I. Jacobs AU - Kenneth N. Levy Y1 - 2006/04/30 UR - https://pm-research.com/content/32/3/45.abstract N2 - 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 ER -