State Street Global Advisors is launching its new Canadian Alpha Edge strategy.

SSgA’s version of extension strategies, also known as ‘130/30’ strategies, involve taking short positions up to 30%, which in turn fund an additional 30% of long positions, maintaining net market exposure at 100%. The Canadian Alpha Edge strategy aims to outperform the S&P/TSX Composite Index over the long-term by between 3% and 4%, the firm said.

“Investors are searching for ways to achieve greater performance from their equity portfolios,” said Dawn Jia, head of the active and enhanced equity team for State Street Global Advisors, Ltd (Canada). “By incorporating both long and short positions, our Canadian Alpha Edge strategy is designed to enable investors to benefit from stocks we expect to outperform as well as those we expect to underperform.”

The new strategy is available globally. “We are delighted to add this new strategy to our existing offerings,” said Peter Lindley, head of investments for State Street Global Advisors, Ltd. (Canada). “Our emphasis on local portfolio management experience in Toronto and Montreal combined with the ability to leverage SSgA’s global intellectual capital make us well positioned to meet our clients’ evolving needs in a dynamic market.”

IE