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In a message dated 2/6/00 10:30:39 AM Pacific Standard Time, chmeyer@xxxxxxxx
writes:
<< I am not aware of any mutual fund managers who specialize on the
short side which brings up the idea of using
hedge funds. >>
Hello Charles,....
There are quite a few mutual funds available to play the downside.
Rydex Ursa fund (RYURX) is one of the first,...1.0 ;1.0 correlation
with the S&P500 futures on the downside (the portfolio is comprised
solely of futures and options to get 1:1 correlation). Rydex has a
short OTC100 fund ,...the Arktos fund (RYAIX),....which is 1:1 correlated
witht he OTC100 on the downside. Rydex has plans to offer 2:1 leveraged funds
(both longside as well as shortside) in the next few weeks. Also Rydex is
supposedly going to allow funds to be traded once in the morning...like 10:30
am,...in addition to their afternoon deadline for fund trades. The Rydex
site
www.rydexfunds.com or.... <A HREF="http://www.rydexfunds.com/index.cfm";>Rydex
Homepage</A> has information on upcoming
changes.
Profunds has Bear (BRPIX) and Ultra Bear (URPSX) with 1:1 and 2:1 exposure to
the downside in S&P500.
A "managed" portfolio is available in the Prudent Bear Fund (BEARX),...
which shorts individual equities and is not correlated with any specific
index.
A fund that typically runs half long and half short is Caldwell and Orkin's
Market Opportunity (COAGX) fund,..but is currently closed to new investors.
There are other "Market Neutral" tpe funds,..most have mediocre performance
at best. If this market does complete a longer term top,...I would expect to
see more mutual fund vehicles deisgned to take advantage of the downside.
One fmaily to watch is MFS,...they have two dynamite "long/short" funds
in-house...
which apparently have only been available to MFS employees,..and have great
returns last year. If these the MFS "hedge type" mutual funds are made
available
to the public,..they would be worth taking a look at in my opinion.
JIM
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