An analysis of UK 130/30 funds offered by various asset managers, including JP Morgan, UBS, Threadneedle and Resolution, found that most had negative returns in the first quarter of 2008. Investors, however, seem to be standing by the vehicles as they poured assets into many of the funds. "The fact that investors continue to put money into these strategies is due to the simple reason that the 130/30 tool has both a strong academic logic and practical implementation efficiency," said Jonathan Price of JP Morgan Asset Management in London.

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