to invest in an alternative investment that doesn’t follow the U.S. stock market too closely, then this may be an investment for you to consider.”
For mutual funds that can help diversify your holdings, Lon Morton, an investment adviser in Calabasas, California, recommends: Alpha Hedged Strategies and Merger funds, Schwab Hedged Equity Select, FPA Crescent, Hussman Strategic Growth, Analytic Defensive Equity, Robeco Boston Partners Long/Short Equity, and PIMCO All Asset All Authority. “If you put a few of them together,” he says, “you can get some of the benefits of hedge funds.”
Keep in mind that an investment in a hedge fund is ultimately a bet on the manager’s ability, and the same is true for hedge-like mutual funds. Before investing, look for evidence that a fund’s manager has a proven track record.
TOP hedge-like mutual FUNDS
|Fund Name||Ticker||1-Year Ann. Total Return*||3-Year Ann. Total Return*||5-Year Ann.Total Return*||Initial Investment||Toll-Free Number||Expense Ratio|
|ICON Long/Short I||IOLIX||9.15||17.29||NA||$1,000||800-764-0442||1.74|
|Hussman Strategic Growth||HSGFX||6.20||11.24||13.41||$1,000||800-487-7626||1.24|
|Robeco Boston Partners Long/Short Eq Inv||BPLEX||20.19||7.18||11.33||$2,500||888-261-4073||3.17|
|Analytic Defensive Equity A**||ANAEX||NA||NA||NA||$2,500||866-777-7818||NA|
|PIMCO All Asset All Authority A**||PAUAX||NA||NA||NA||$5,000||800-426-0107||NA|
*As of Nov. 30, 2006 Source: Morningstar Inc. Morningstar makes every effort to ensure the accuracy and completeness of this data, but cannot guarantee it. **Fund has operated less than one year.