RT Journal Article SR Electronic T1 Enhanced Active Equity Strategies JF The Journal of Portfolio Management FD Institutional Investor Journals SP 45 OP 55 DO 10.3905/jpm.2006.628405 VO 32 IS 3 A1 Bruce I. Jacobs A1 Kenneth N. Levy YR 2006 UL https://pm-research.com/content/32/3/45.abstract AB Enhanced active equity investing relaxes the long-only constraint by permitting short sales, while maintaining full exposure to equity market return and risk. The enhanced active equity approach is facilitated by modern prime brokerage structures that allow investors to use the proceeds from short sales to purchase long positions. Freeing equity portfolios from the long-only constraint can enhance performance by permitting meaningful underweight positions that are simply not achievable in long-only portfolios. The investor can thus more fully exploit security valuation insights.TOPICS: Portfolio construction, portfolio theory, equity portfolio management