BOSTON, April 7 Fidelity Investments, the
world's biggest mutual fund company, said on Monday it has
launched its first fund for retail investors that can sell
stocks short as well as hold them long.
Fidelity said in a statement it launched the "130/30 Large
Cap Fund" to meet growing demand from retail investors and
advisers for these strategies that are normally used by
Mutual funds of Fidelity and other firms generally take
long positions, in which investors buy and hold stocks. But the
'130/30' strategies allow the funds to take some short
positions, in which investors borrow shares to sell with the
expectation they can be bought back at a cheaper price.
Legg Mason Inc (LM.N), Vanguard Group and others have
already launched mutual funds that involve some form of
shorting, a technique normally used by hedge funds.
"Investors... are expressing interest in funds that adopt
institutional-like strategies for achieving attractive
risk-adjusted returns," Sanjiv Mirchandani, president of
Fidelity Personal and Workplace Investing Growth Business, said
in the statement.
The 130/30 Large Cap Fund will be managed by Keith Quinton,
who said in the statement Fidelity has a long track-record in
taking short positions.
"Fidelity has a more than 15-year record in shorting via
portfolios available to institutional clients," Quinton said.
Boston-based Fidelity managed $1.5 trillion in assets as of
(Reporting by Muralikumar Anantharaman; Editing by Derek