RAM launches 130/30 guide

Resolution Asset Management, the £51bn multi-specialist investment provider, has launched a new guide to 130/30 funds as it seeks to broaden understanding of short extension strategies among intermediaries and their clients.

Through Cartesian Capital, its UK specialist joint venture boutique, RAM has already established itself as a leading player in the 130/30 market. The Resolution International Cartesian UK Equity 130/30 fund, managed by Jeremy Hall - one of the most experienced shorters in the 130/30 market - has attracted more than £47m since its launch in December 2007.

RAM has also recently launched a range of 130/30 funds, focusing on the US, UK and Japan.

RAM director Jonathan Polin says: "Many investors are no longer satisfied by funds that only modestly outperform a relevant index and 130/30 funds were developed out of a desire to meet their needs. However, we recognize that the short extension strategy is more complex than the long-only approach and that there is a need to explain how 130/30 funds work in practice.

"The guide provides a comprehensive explanation of the short extension strategy and how it can enable experienced managers to generate higher returns. As a responsible company RAM is determined to ensure investors fully understand the structure of what we believe will become a hugely popular investment over the coming years."

The guide, available free from resolutionasset.com/Cartesian130-30 explains:

How the short extension approach works
How it can be applied
What it aims to do - and why
How it compares against the long-only approach
The relative risks