Well, it sounded good on paper.
The Thesis Flexible Fund (TFLEX), which in March 2010, was touted as a fund quipped with a full arsenal of tools to tackle markets in any condition. According to the fund’s Website, “many mutual funds simply buy securities they believe will increase in value. The Flexible Fund does that and a whole lot more.”
In essence, the fund was launched as a long/short vehicle that can bet on bonds, derivatives, commodities or other products, both domestically and internationally. However, the fund returned -14.30% in 2011 versus the S&P 500 TR's 2.11% in its first full year of trading, according to Morningstar. It rebounded to 12.165 the following year but still trailed the S&P, which gained 16%. Year-to-date through March 31, the fund is down -2.54% versus a 10.61% gain for its benchmark.
The fund has also failed to gain any traction among investors having managed just some $2.5 million as of April 19, according to Bloomberg. It also sports a hefty expense ratio of 402 basis points.
Therefore, it is not surprising that the New York-based Thesis fund Management has decided to liquidate the fund on May 6.
A spokesperson for the firm was not immediately available to comment on the fund’s liquidation.