Long-only managers have experience of taking active positions around a pre-defined benchmark. Actively going short requires a different skill set in order to identify stocks likely to underperform and to implement those insights efficiently. Removing the constraint allows a manager's insight to be more fully implemented and can result in a more optimal portfolio, with a more attractive risk and return profile than traditional long-only investment.
Although losses on the long side of the portfolio
The week on Risk.net, July 14–20, 2017Receive this by email