The Long and Short of It

To satisfy what it says is demand from advisors and other intermediaries, State Street Global Advisors, the investment management arm of State Street Corp., recently launched the SSgA Core Equity Fund, a mutual fund that takes both long and short stock positions, which is known as a 130/30 fund.

State Street says the SSgA Core Edge Equity Fund will invest its assets, including proceeds received from short sales of securities, primarily in large and mid-cap securities; the underlying valuation or business fundamentals of which indicates prospects for growth. “The equities that the fund owns should equal as much as 130% of the fund’s net asset value at any given time,” State Street said in a release announcing the launch of the fund. “The fund plans to short sell the securities of companies with apparent deteriorating business fundamentals and/or valuations. The replacement cost of all securities sold short should equal approximately 30% of the fund’s net asset value at any time.”