Kent Smith, Smith Group partner and director of marketing, said: “The Smith Group 130/30 portfolio uses the same investment process used on our flagship Large Cap Core/Growth strategy, which has a long track record. Our bottom-up research is used to determine attractive and unattractive stocks. Approximately 82% of a 130/30’s returns will come from the long-only book. The net exposure to the market is very similar to a long-only portfolio. Results of our portfolio show the 130/30 delivers enhanced returns above the long-only Large Cap Core/ Growth, with a similar risk profile.”
In the announcement, the firms noted that data from Financial Times indicated more than half of U.S. public pension plans and a quarter of corporate pension plans are expected to increase their investments in 130/30 strategies over the next three years. About 17% of foundations and endowments said they would do the same.