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Old 01-04-2014, 11:52 AM   #21
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Check out Merger Fund (MERFX). They buy/sell both sides of announced acquisitions, so the performance is market neutral. Very long track record - sailed right through 2008 with barely a blip.
That's an asset class I've never read about before. Expenses are high but a beta of 0.13 - never seen anything that low, and the chart seems to bear it out. Might meet the OP's ask, but I don't fully understand what the fund is (yet), something to look into...probably too esoteric for me.
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Old 01-04-2014, 12:34 PM   #22
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Nico, I assume you are asking as a follow up to this thread: Invest proceeds from home equity loan or pay it off? itt

If I could afford to lose some of it and still make the equity payments, I might put it into Vanguard's Wellington fund, which yields a little more than 2 percent in dividends but also is likely to appreciate in value. It is very unlikely you would lose it all. You would of course have to pay taxes on the gains and dividends.

But really, I would more likely just pay back the home equity loan
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Old 01-04-2014, 01:55 PM   #23
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That's an asset class I've never read about before. Expenses are high but a beta of 0.13 - never seen anything that low, and the chart seems to bear it out. Might meet the OP's ask, but I don't fully understand what the fund is (yet), something to look into...probably too esoteric for me.
There are two merger arbitrage funds with a longish track record, MERFX and ARBFX. I own both and they are a nice, low risk way to earn modest, steady returns. There is a fairly detailed explanation of how these things work here: Life, Investments & Everything: Picking Up Nickels In Front Of A Steamroller
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Old 01-05-2014, 04:07 PM   #24
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There are two merger arbitrage funds with a longish track record, MERFX and ARBFX. I own both and they are a nice, low risk way to earn modest, steady returns. There is a fairly detailed explanation of how these things work here: Life, Investments & Everything: Picking Up Nickels In Front Of A Steamroller
I've been considering these for years but never pulled the trigger. This may be the year.

I am tentatively planning to hold them in tax sheltered accounts; but, I have not given this too much thought yet. What are your thoughts on proper location of these investments?
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Old 01-05-2014, 04:15 PM   #25
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I've been considering these for years but never pulled the trigger. This may be the year.

I am tentatively planning to hold them in tax sheltered accounts; but, I have not given this too much thought yet. What are your thoughts on proper location of these investments?
They are not tax efficient in the least, so if you can put them in tax sheltered accounts it is a boon. I have small amounts in an after tax account, but otherwise I have them in IRAs.
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Old 01-05-2014, 06:14 PM   #26
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I have the MERFX position in my IRA as well.
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