The 130/30 market has been growing by leaps and bounds, but
that growth could very well slow, given recent performance. In
this year's rough first quarter, 130/30 funds lost a median
10.46%, according to eVestment Alliance. That's slightly worse
than the S&P 500's decline of 9.9% and significantly worse
than their stated goal, which is to outperform their benchmark
by 200 to 500 basis points.
The quarter's performance is in sharp contrast to 2007, when
130/30s outperformed the S&P on a gross basis, gaining a
median 6.98% versus the S&P's rise of 3.56%....