The 130/30 market has been struggling this year, but don't write it off just yet. While many hedge funds have been mounting losses, 130/30 funds are doing exactly what they were designed to do - outperform broad market indices.
As of the end of June, 130/30 funds had lost a median 10.43% for the year, according to data from eVestment Alliance. By comparison, the S&P 500 was down 11.5% during the same period, while the Absolute Return Composite Index was down 1.79%.
That's good news for 130/30 fund managers, as investors continue to question whether the hedge fund-like vehicles