Extended equity strategies

November 2025

Extended equity strategies, also known as “active extension,” “beta-one,” or 130/30 strategies, are designed to allow portfolio managers to more fully capitalize on both their bullish and bearish stock convictions.

The primary appeal is that by combining long and short positions, they offer skilled managers greater latitude for generating excess returns, all while maintaining a net 100% long exposure and targeting a beta to the market of 1.0. That is, they are intended to keep up with the market over the long term while offering greater alpha potential than traditional long-only strategies.