One of the most important developments in the wave of new portfolio techniques is enhanced active equity strategies of the 120-20 and 130-30 variety. Although these strategies have become increasingly popular in the search for alpha, they are not always well understood. Bruce I. Jacobs discusses the following:  

• Do 120-20 strategies increase investors’ flexibility to underweight and overweight securities?
• How do the strategies compare with market-neutral long–short strategies?
• Are they significantly riskier than long-only strategies because they use short positions and leverage?

This is an archived recording of a live webinar that took place on 19 September 2007 and is based on the Financial Analysts Journal article"20 Myths about Enhanced Active 120-20 Strategies" (July/August 2007). Please note that text may be difficult to read in this recording. The presentation slides are available for download in the video player.