Northern Trust Global Investments has launched a Quantitative 130/30 core equity strategy, which seeks to outperform the Russell 1000 Index.

The strategy has a goal of outperforming the index by 4% annually over a full market cycle and enables the portfolio manager to take short positions up to 30% and long positions up to 130%.

“With this strategy, institutional investors get to capture the full benefit of our research capabilities while overcoming traditional long-only inefficiencies.”

The 130/30 strategy is designed to leverage the strategy’s alpha while maintaining 100% exposure to the market.

By relaxing the long constraint, the strategy can achieve higher alpha targets without sacrificing diversification or efficiency.

To read our roundtable called Achieving Alpha, click here.

To comment on this story email craig.sebastiano@rci.rogers.com.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com