UBS is offering a new fund based on an investment concept incorporating a 130/30 strategy: UBS (Lux) Key Selection Sicav – US Equities 130/30 B. Up to now, fund products with a 130/30 strategy have mainly been the preserve of institutional investors. This new fund opens this strategy to private investors. It differs from other equity funds, which only invest in long positions, by taking advantage of additional sources of out performance through a 130/30 strategy that entails 130 per cent long positions and 30 per cent short positions on average. A long-only portfolio is invested in stocks which the portfolio manager sees as undervalued and avoids those which are thought to be overvalued. Relaxing this restriction allows UBS Key Selection US Equities 130/30 to generate returns from overvalued stocks, too, by taking up short positions. The fund therefore has more potential to outperform than long-only equity funds and its risk level, and hence volatility is not substantially higher than the market average. This Key Selection US Equities 130/30 portfolio is broadly diversified in terms of both stocks and sectors and favours listed US large and mid caps. Its benchmark is the internationally-recognised MSCI USA . The new fund is suitable for private investors with a long-term investment horizon.