An alternative approach is the “130/30” strategy, in which managers go short on falling prices and using leverage (borrowing). For example, if a fund has $10b of assets, it will purchase $13b of...

An alternative approach is the “130/30” strategy, in which managers go short on falling prices and using leverage (borrowing). For example, if a fund has $10b of assets, it will purchase $13b of assets financing the difference by selling $3b of short position.