Hedge Funds

Hedge Mutual Funds - Making Sure Your Mutual Fund Hedge is Working

In volatile market times like those we have had recently, there is a natural increase in interest in hedge mutual funds as a way to protect capital in turbulent times. We surveyed a sample of hedge mutual funds in the past, higlighting a sample of funds that use a variety of techniques to mitigate market risk as part of a hedging strategy. Recently ING has introduced another variant of hedge mutual funds, the ING 130/30 Fundamental Research fund.
More on Hedge Mutual Funds - Making Sure Your Mutual Fund Hedge is Working

Filed under Hedge Funds by

Bear Funds - Bear Mutual Funds and ETFs

As we discussed in our previous article on our hedged mutual fund portfolio when the market is moving against the bulls as quickly as it has been recently, its time to take another look at risk management strategies, and in this case specifically hedging strategies. There are a number of ways to hedge your mutual fund or ETF position, but our favorite is the use of bear funds or bear ETFs.
More on Bear Funds - Bear Mutual Funds and ETFs

Filed under Asset Allocation, Hedge Funds by

Hedged Mutual Fund Portfolio to Manage Portfolio Risk - Diversification May Not Be Enough

A day like today in the market can make it painful to look at your mutual fund holdings. For example, of the Fidelity Select funds that we track, they were all down anywhere from 0.41% to 3.24% It’s clear that in order to manage mutual fund portfolio risk, diversification alone will not do much on a day like today, when everything is down. (This is an example of what is sometimes referred to as negative co-variance, where market instruments like mutual funds and ETFs tend to be uncorrelated on the upside, but when bad news strikes, they have a greater degree of correlation (i.e. they all go down at the same time).
More on Hedged Mutual Fund Portfolio to Manage Portfolio Risk - Diversification May Not Be Enough

Filed under Hedge Funds by

Hedge Fund ETF - Hedge Fund for the Average Investor?

Saw an article today on Yahoo Finance. The Man Group has announced that they will list their hedge fund as an ETF on the New York Stock Exchange. The type of ETF is what make this announcement interesting to me.
More on Hedge Fund ETF - Hedge Fund for the Average Investor?

Filed under ETF News, Hedge Funds by