The bulk of these strategies are offered by quantitative managers at large traditional companies. As traditional managers increasingly compete by providing 130/30 and related strategies, hedge funds will also face tougher competition for investors, stock borrowing, prime broker finance and margins. Industry estimates expect active extension strategies could grow to $1-$2trn by 2010.
These funds display many of the characteristics of long-only funds. They are designed to be 100% exposed to the