A news release from Paradigm Asset Management Co., LLC said Paradigm’s 130/30 variable extension product, based on its AlphaMax long only strategy, is designed to utilize its AlphaMax ranking process for both long and short positions.
Paradigm’s approach uses a range of leverage from 5% to 40% instead of a static percentage. “The degree of leverage employed at any given time will be determined by intensity of our alpha signals and prevailing market conditions,” explained Gregory Pai, Managing Director of Paradigm, in the news release.
Paradigm expects the 130/30 product to provide an additional 100 to 200 bps of annual excess return over the long only strategy. The long only AlphaMax large cap products have a target annualized excess return of 3% to 5%, while the small cap version seeks to deliver 5% to 7%, according to the news release.
More information is at www.paradigmasset.com .