Products July 9, 2007

Mellon Equity Associates Launches 130/30 Strategy

July 9, 2007 (PLANSPONSOR.com) - Mellon Equity Associates has launched a 130/30 equity product aimed at outperforming the Standard & Poor's 500 Index by using short sales.
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According to a press release, the Extended Alpha Large Cap Core Strategy has the ability to overweight the most attractively ranked stocks by buying up to 130% of the total portfolio value. The additional 30% exposure to favored stocks is funded with proceeds raised by shorting securities considered to be overvalued. 

“We believe that utilizing a limited amount of shorting significantly improves our opportunity to outperform the index in a consistent manner,” said Jocelin Reed, portfolio manager of the 130/30 strategy. “Now we can actually short these over-valued securities.”

Two other BNY Mellon Asset Management units, San Francisco-based Mellon Capital Management and Boston-based The Boston Company Asset Management, have launched 130/30 strategies since December 2006.

Additional information is available at www.bnymellon.com .

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