Strategy, 130-30

In the early 2000s, relaxed regulation for mutual funds, first in the US, and then in the UK, Luxembourg and the rest of the European Continent, have allowed the ‘long extension’ fund to develop. This hybrid creature allows the fund manager to take additional long ‘bets’, while limiting net market exposure to 100% of net assets by holding short bets of an equivalent amount. The normal percentage extension is 30%; hence 130/30.