2009 Due Diligence Forum

The future role of active extension in Australia


Taking Stock - Equities - Country/Region


Grant Samuel Tribeca

Research Paper

Only a year ago, long short active extension was being hailed as the next great advancement in active investing which would capture an increasing share of equity allocations. With the complete meltdown in global asset markets there is now some uncertainty as to its role and benefits. This research paper shows that active extension remains the most efficient structure to deliver alpha in the Australian equity market and that the most significant impediment to capturing returns from any investment process remains the long only constraint. By removing this constraint, opportunities to access additional sources of alpha are opened up as well as significant improvements in portfolio construction.


Sean Fenton, Portfolio Manager, Tribeca Investment Partners