Hedging Market Risk

A vehicle for high net worth individuals is becoming more accessible

sell other stocks short, hoping to make money when their prices fall.

Kinnel says that he is impressed by some “market neutral” funds that have adopted the hedge funds approach of aiming for profits in all kinds of markets. These “tame versions” of hedge funds have had mixed results, but there are some he cites with approval. “Calamos Market Neutral Fund (CVSIX) is run by a manager who is very knowledgeable about convertible bonds,” he says.

But whether you choose hedge funds, funds of funds, or their mutual fund cousins, Kinnel cautions, “Don’t put more than 10% of your portfolio into such funds. Before you invest at all, make sure you understand how the fund will invest and how your money will be used to compensate the manager.”

Market Neutral Mutual Funds

Fund Name (Ticker) 1-Year Ann.
Total Return*
3-Year Ann.
Total Return*
Toll-Free
Number
Minimum
Initial Investment
AXA Rosen Vl Mkt Netrl Inst (BMNIX) 26.55% 9.34% 800-447-3332

$1,000,000

AXA Rosen Vl Mkt Netrl Inv (BRMIX) 26.28 8.99 800-447-3332

2,500

AXA Rosen SS Mkt Netrl Inst (SSMNX) 23.44 9.44 800-447-3332

1,000,000

AXA Rosen SS Mkt Netrl Iv (RMNIX) 23.13 9.12 800-272-2700

500

Phoenix-Capital West Mrt Neu A ( EMNAX) 9.1 6.06 800-243-1574

500

Phoenix-Capital West Mrt Neu B (EMNBX) 8.23 5.28 800-243-1574

500

Phoenix-Capital West Mrt Neu C (EMNCX) 8.21 5.25 800-243-1574

500

Calamos Market Neutral B (CAMNX)** 5.18 800-823-7386

N/A

Calamos Market Neutral A (CVSIX)** 3.95 9.98 800-823-7386

N/A

Enterprise Merg & Acquis Y (EMAYX) 1.11 800-821-9540

1,000,000

Enterprise Merg & Acquis A (EMAAX) 0.61 800-821-9540

1,000

Enterprise Merg & Acquis C (EMACX) 0.12 800-821-9540

1,000

Enterprise Merg & Acquis B (EMABX) 0.12 800-821-9540

1,000

*AS OF JUNE 11, 2002 **FUND CLOSED TO NEW INVESTORS
SOURCE: MORNINGSTAR INC.
Pages: 1 2
ACROSS THE WEB