Inalytics launches a service to analyse the performance of 130/30 fund products

The specialist manager evaluation firm said the service would aim to separate out 130/30 managers that could add value from skill by verifying that their shorts actually generated returns.

It said it would analyse every decision taken by a given manager, all active portfolio positions and each purchase – and extract where, how and why alpha is generated or lost and offers insights into how the investment process can be improved.

Inalytics chief executive and founder Rick Di Mascio said: "130/30 funds have been pilloried and lauded almost in equal measure over the past year.

"There has been much discussion but very little actually said – our philosophy has always been to cut through the noise and drill directly down into why managers and their investment decisions generate or lose alpha."