Prudent Bear

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Oct 22, 2008 9:17 pm

I really like this fund for a long term holding.  It seems to be a great way to reduce the volitility of a portfolio as a hedge.  If you pair it up with some structured S&P 500 notes that pay 3 for 1 on the upside, I think you suffer much on the performance during up markets.  This fund also seems like a great way to keep clients in equities instead of having them bail to cash or gold (god I have heard "gold" a lot lately).  If you can coinvince a client to put 30% of their equity portfolio in Bear and keep the rest "as is" to reduce the volitility it can help them from bailing out of equities totally and missing a rally.

 
I am also really liking the flexible portfolio funds like Ivy Asset Strategy and Pimco All Asset All Authority.  Hedge funds have done a pretty good job of making tactical moves as the market dictates and don't simply stick to a style box.
 
Also, I have really embraced the theme of diversification across more asset classes aside from stocks, bonds and cash.  Commodities, VAs, Futures, REITs as well as the ability for these mutual fund managers to have the ability to short the market seem to allow smooth, consistent returns.
 
Anyhow, I like Bear because it is so actively managed and doesn't do poorly in up markets so it doesn't drag down your portfolio like an inverse ETF or some other bear stategy that always does the opposite of the index.  Thoughts?    
Oct 23, 2008 11:38 am

I tend to agree.  Although I have started to question the ability of REIT's to provide any type of hedge.  Speaking of REIT's, what ever happened to ALLREIT?  You guys remember him?

Oct 23, 2008 11:51 am
B24:

I tend to agree.  Although I have started to question the ability of REIT's to provide any type of hedge.  Speaking of REIT's, what ever happened to ALLREIT?  You guys remember him?

 
Yeah, maybe he's not ALLREIT?  Get it?
 
What happened to Blarmstorm or whatever his name is/was?  Maybe he's too successful for us now?
Oct 23, 2008 6:06 pm

I think private REITS provide a better hedge than publicly traded REITS(aren't they really just small cap funds)