It was only on Septemeber 1 that I wrote about the latest "hot product" from the mutual fund industry, the 130/30 fund which combines long positions (100) with short positions up to 30% of the value of the longs thus allowing the fund to produce "alpha" and profit in up and down markets.
Well under current conditions with a list of around 900 (and it seems growing) stocks that cannot be sold short the strategy is difficult if not impossible to implement.
Have the fund companies announced anything about how they are responding to this major impediment to their strategy ?...not that I could find.
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