Source: Bank of New York Mellon
The Bank of New York Mellon (NYSE: BK), a global leader in securities servicing and asset management, has introduced the first platform that provides complete support to managers of 130/30 strategies.
The Bank of New York Mellon and its subsidiary, Pershing LLC, are the first to offer clients a comprehensive 130/30 platform as a result of enhancements made to the prime brokerage capabilities at Pershing. Through this new platform, the Company can provide 130/30 investment managers with a wide range of prime services, including securities lending, execution and financing, and asset servicing capabilities such as custody, fund accounting and administration and collateral management.
"The Bank of New York Mellon is uniquely positioned to provide these comprehensive solutions," said Gerald Hassell, president of The Bank of New York Mellon. "We are bringing to the market a full suite of integrated services and financing functions needed to manage eligible 130/30 funds such as limited partnerships, 40 Act Funds, hedge funds and separately managed accounts."
Popularity is increasing for 130/30 strategies, which enable asset managers to overweight stocks deemed most attractive and shorting stocks they expect to under-perform. While these strategies could enable investors to incorporate a broader range of knowledge into their investment processes, they also present challenges related to managing short positions and can add complexity to a fund's operational and technology infrastructure.