Mellon Equity Associates, a Pittsburgh investment subsidiary of Bank of New York Mellon Corp., launched its Extended Alpha Large Cap Core strategy, a 130/30 equity product designed to outperform the Standard & Poor's 500 index through the use of short sales.
The product, which Mellon Equity introduced Monday, aims to overweight the most attractively ranked stocks by buying up to 130% of the portfolio's value. The additional 30% exposure to favored stocks is funded with proceeds raised by shorting securities considered to be overvalued.
Since December two other units, Mellon Capital Management Corp. of San Francisco and Boston Company Asset Management LLC, have launched 130/30 strategies. The two units now have more than $70 million of assets under management in those products.
Mellon Equity, one of its parent's investment boutiques, has $21 billion of assets under management.
Bank of New York Mellon has more than $18 trillion of assets under custody and administration and $1 trillion of assets under management.
