130/30s Seen as Rafts In the Whitewater Rapids

But Benchmark Indexes Could Constrain Growth

May 12, 2008

NEW YORK - Cautious investors will be watching 130/30 funds over the next few years to see how the new products perform. Many investors are attracted to these active-extension strategies capable of hedge fund gains. But with higher fees than regular mutual funds and short-term track records, even though they are often under the supervision of well-established financial services companies, 130/30 funds are still very new and considered a gamble.

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