While most funds strictly adhere to their investment mandates, more are permitting their managers to move into cash and bonds as a defensive play. And the strategy proved to be extremely wise in last year’s steep declines.

The Stadion Managed Fund, a large blend fund, began moving more of its assets into cash as early as the end of 2007. Over the past three years, it has returned an average of 3.9%, beating 99% of its competitors.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.