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 |
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| 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. |
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