The Long and the Short of Extension Strategies

In a world of fully valued—and in many cases overvalued—assets, generating alpha (i.e., above market returns) is at a special premium. Long-only constraints can limit the scope for manager value added by preventing managers from fully expressing their skill. Extension strategies ease this constraint by introducing limited latitude to short securities while maintaining a constant exposure to the broad market through additional, offsetting long positions. Implementing extension strategies requires especially skilled managers to control risk and, therefore, necessitates careful investor due diligence. We believe that extension strategies, if managed well, can play a beneficial role in many portfolios. Please join Dianna Gonzales-Burdin, Managing Director and Head of Non-U.S. Equities at Strategic, and Tim O’Hara, Co-Chief Investment Officer at Strategic, as they take a fresh and in-depth look at the pros and cons of extension strategies. Click Here to View The Long and the Short of Extension Strategies