Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Products January 25, 2008
SSgA Announces Launch of Long-Short Strategy Mutual Fund
January 25, 2008 (PLANSPONSOR.com) - State Street
Global Advisors (SSgA), the investment management arm of
State Street Corporation, announced the launch of the SSgA
Core Edge Equity Fund, a long-short (130/30) mutual fund that
seeks to achieve long-term capital appreciation over the
course of an economic cycle.
Reported by Rebecca Moore
Edge strategies, State Street’s version of short-extension or 130/30 approaches, introduce a limited amount of short selling in order to take advantage of a negative viewpoint in the stock ranking process, while providing capital for additional long positions of the same magnitude to maintain 100% exposure to a benchmark, SSgA explained in the announcement.
The SSgA Core Edge Equity Fund will invest its assets, including proceeds received from short sales of securities, primarily in large and medium-capitalization securities – the underlying valuation or business fundamentals of which indicates prospects for growth. The fund plans to short sell the securities of companies with apparent deteriorating business fundamentals and/or valuations.
“The SSgA Core Edge Equity Fund offers mutual fund investors access to State Street’s unmatched experience as a disciplined manager of long-short equity strategies for institutional clients,” said James Ross, senior managing director at State Street Global Advisors, in the announcement. “By removing the long-only constraint from the stock selection process, the Core Edge Equity Fund is designed to provide an increase in expected returns with a risk level that is moderately higher than that of the S&P 500 Index.”
More information can be obtained at www.ssga.com .