With the market so volatile, many investors have embraced long-short mutual funds, The Wall Street Journal reports.
But in the 30 days ended Aug. 3, the category has fallen an average of 5.3%, close to the 5.95% drop in the S&P 500. In fact, more than a third have lost more than the market, according to Lipper.
“This was [long-short funds’] opportunity to prove their mettle, and they came up short,” commented Jeff Tjornehoj, an analyst with Lipper.
Another type of mutual fund supposed to beat the market, market-neutral funds, are designed to remain in positive territory no matter what the market is doing. But they haven’t been doing any better. In the 30 days ended Aug. 3, these funds are down 1.24%.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.