Long-Only Constraint Is A Potentially Costly Drag On Performance

Navi Mumbai, India (PressExposure) February 25, 2009 -- 130-30 The New Long Only( http://www.bharatbook.com/Market-Research-Reports/130-30-The-New-Long-Only.html )reports gives the information on portfolio managers and investors. Long-only portfolio managers and investors have acknowledged that the long-only constraint is a potentially costly drag on performance and loosening this constraint can add value, but the extent of the performance drag is difficult to measure without a proper benchmark for a 130/30 portfolio. A passive but dynamic benchmark can be developed, consisting of a plain-vanilla 130/30 strategy using simple factors to rank stocks and standard methods for construction of portfolios based on these rankings. Two types of indexes are produced—investable and look-ahead indexes; the former uses only prior information, and the latter uses realized returns to set an upper bound on performance. Historical simulations of these 130/30 benchmarks illustrate their advantages and disadvantages under various market conditions. For vast range of market reports you can visit: [http://www.bharatbook.com/Market-Research/Finance.html] Or

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Press Release Submitted On: February 24, 2009 at 10:27 pm
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