Relaxing the shorting constraint allows the strategy to generate alpha more efficiently, but it also allows risk to be managed more effectively, which in turn gives additional capacity to generate alpha.
The JPMorgan Funds – Europe Equity Plus Fund uses an active-extension approach to help investors enhance their European equity exposure. This approach has three key benefits:
1
Your money works harder
Gross market exposure is maintained at 140%-180%, while net exposure stays at 100%.
2
A little shorting goes a long way
Relaxing the shorting constraint generates additional alpha and helps to manage risk more efficiently.
3
You get the best of both worlds
The strategy provides access to a risk-constrained portfolio and an unconstrained alpha outcome.
Combining these three benefits with a strong investment team and process provides a solid foundation for success, which is evidenced by the fund’s results.