We've noted that 130/30 funds seem to be all the rage right now. The industry seems to be betting big that these funds will continue to win over investors, especially big pensions. Investment Dealers' Digest notes the current size of the 130/30 market is about $50 billion. But some think that it will grow to $1 trillion over the next few years. For many hedge fund firms [1], winning 130/30 funds are their key to garnering more business from institutions. Pensions for now seem enamored. They like the short component, and reckon that a hedge fund is more adept at it than a long-only type. So to really win, a fund will have to generate some alpha from its short expertise. Long-only funds will have to adapt.  

For more:
- here's the Investment Dealers' Digest article [2]