from Wikipedia, the free encyclopedia

With 130/30 are equity funds designated that rely on the use of derivatives as well on rising prices ( long position ) (as also speculate on falling prices short position ) can. The limit for a long position corresponds to an investment level of 130%, that for a short position 30%, from which the name is derived. 130/30 funds, just like hedge funds , can achieve gains (or losses) in different market phases.


The reasons why this relationship has established itself in the market have not been finally clarified. Some fund providers have learned that this is a ratio that theoretical studies have shown to be most advantageous when considering the additional income versus the additional fluctuation in value. At the beginning of 2008 there were already investment funds from many large fund providers in Germany that are based on this strategy, including DWS Investments , Cominvest , JPMorgan and Goldman Sachs .


The strategy of such a fund is based on the fact that a fund manager can sometimes bet on falling prices and is therefore more flexible, which means that there is a chance of achieving better returns compared to normal investment funds (long-only strategies) even when prices are falling . According to the positions entered, there are four possibilities for success:

Long positions correct / short positions correct

Outperformance compared to normal investment funds due to the leverage of the positions taken.

Long positions correct / short positions incorrect

Losses from the short positions should eliminate the additional profits from the overinvested (130%) long positions, which should end up with profits equivalent to those of normal mutual funds.

Long positions wrong / short positions correct

Quasi inverse situation as in the previous market situation. The profits from the short positions roughly cover the losses from overinvesting the long positions, which should ultimately result in a return that corresponds to that of normal investment funds.

Wrong long positions / wrong short positions

Due to the leverage of the positions taken, the fund collapses more than a normal comparison fund in this case. This makes it clear that for an investor in this strategy not only are the earnings opportunities higher, but there is also a greater risk of loss.


The 130/30 model combines quasi derivative elements with conventional equity investments in the form of long positions in an equity fund, which per se increases the risk of profit and loss. The strategy is based on the fact that the fund managers are able to react to future market events based on an information advantage and take appropriate positions, which is problematic even when considering the principal-agent theory , provided it is not based on insider knowledge . In addition, the vast majority of fund managers in the past failed to beat the benchmark, which raises additional questions. The fact is that at least the fund companies will earn from the various fees of the investment funds and will therefore continue to offer and advertise this model more in the future.

See also


  1. Thomas Hammer: Investment: Magic Formula 130/30. In: Zeit Online. August 31, 2007, accessed January 9, 2008 .
  2. new investor No. 4 2007
  3. 130/30 funds: Karsten Stroh (JPMorgan Asset Management): Trending topic or future-oriented investment approach?
  4. http://www.manager-magazin.de/geld/geldanlage/0,2828,500769,00.html