• Equity
  • U.S. Equity
  • International/Global
  • Emerging Markets
• Fixed Income
• Real Estate & Infrastructure
• Hedge Funds
• Private Equity
• Currency
• Global Multi-Asset Strategies
• Cash Management
• Mutual Funds

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130/30 Equity Investing

Longing for more alpha from your equity allocation?

Tom Luddy, Portfolio Manager   Susan Bao, Portfolio Manager

130/30 strategies aim to extract greater returns than a typical “long-only” equity strategy by maximizing our stock selection expertise. These 130/30 strategies incorporate an overlay of short positions in less attractive stocks, offset with an overweight of equal size in more attractive stocks. This approach allows active managers to “harvest” their insights more effectively and generate returns more efficiently than in traditional equity strategies. J.P. Morgan Large Cap 130/30 Our pioneering fundamental Large Cap 130/30 strategy has significantly expanded alpha generation and improved portfolio efficiency by adding long and short positions while maintaining full market exposure. Our bottom-up, fundamental research enables us to identify and exploit short-term equity mispricings and long term undervaluation in an effort to consistently deliver superior investment results. Large Cap 130/30 more completely captures the value of our proprietary stock ranking process and the expertise of the portfolio managers, Tom Luddy and Susan Bao, and our fundamental research team. Large Cap 130/30 has a track record dating to 2004 - one of the longest in the US Large Cap space, with success in both positive and negative market environments. For more information on 130/30 investing or Large Cap 130/30 click on our tools below. You may also contact your J.P. Morgan client representative, or email us at jpmam.info@jpmorgan.com. There is no guarantee that the use of long and short positions will succeed in limiting a portfolio’s exposure to domestic stock market movements, capitalization, sector-swings or other risk factors. Investment in a portfolio involved in long and short selling may have higher portfolio turnover rates. This will likely result in additional tax consequences. Short selling involves certain risks, including additional costs associated with covering short positions and a possibility of unlimited loss on certain short sale positions.