Hi. I read an article recently about using a hedge/alternative mutual fund as a partial substitute for bond portion of my asset allocation. I have listed a sampling of these types of funds below.
This newer breed of mutual fund claims to deliver hedge fund- like exposure, but is available in a mutual fund structure. They are mutual funds that employ investment tactics traditionally only found in hedge funds including the use of leverage, derivatives, and short selling.
Bonds and bond funds are predicted to not perform as well as they have in past and some suggest hedge/alternative funds as a (partial) alternative.
Do you have any of these hedge/alternative funds? If so. what percent of your total investment portfolio is allocated to them?
Long/Short Equity
ASTON/Anchor Capital Enhanced Equity Fund (AMBEX)
Performance (1-YR): 6.01% Expense Ratio: 1.23%
Bridgeway Managed Volatility Fund (BRBPX)
Performance (1-YR): 8.41% Expense Ratio: 0.95%
Burnham Financial Long/Short Fund (BURFX)
Performance (1-YR): 18.59% Expense Ratio: 1.75%
Market Neutral
AMG FQ Global Alternatives Fund (MGAAX)
Performance (1-YR): 1.40% Expense Ratio: 2.00%
Multialternative
Vantagepoint Diversifying Strategies Fund (VPDAX)
Performance (1-YR): 4.36% Expense Ratio: 0.49%
Dreyfus Dynamic Total Return Fund (AVGAX)
Performance (1-YR): 7.32% Expense Ratio: 1.50%
DWS Select Alternative Allocation Fund (SELAX)
Performance (1-YR): 1.45% Expense Ratio: 1.73%
This newer breed of mutual fund claims to deliver hedge fund- like exposure, but is available in a mutual fund structure. They are mutual funds that employ investment tactics traditionally only found in hedge funds including the use of leverage, derivatives, and short selling.
Bonds and bond funds are predicted to not perform as well as they have in past and some suggest hedge/alternative funds as a (partial) alternative.
Do you have any of these hedge/alternative funds? If so. what percent of your total investment portfolio is allocated to them?
Long/Short Equity
ASTON/Anchor Capital Enhanced Equity Fund (AMBEX)
Performance (1-YR): 6.01% Expense Ratio: 1.23%
Bridgeway Managed Volatility Fund (BRBPX)
Performance (1-YR): 8.41% Expense Ratio: 0.95%
Burnham Financial Long/Short Fund (BURFX)
Performance (1-YR): 18.59% Expense Ratio: 1.75%
Market Neutral
AMG FQ Global Alternatives Fund (MGAAX)
Performance (1-YR): 1.40% Expense Ratio: 2.00%
Multialternative
Vantagepoint Diversifying Strategies Fund (VPDAX)
Performance (1-YR): 4.36% Expense Ratio: 0.49%
Dreyfus Dynamic Total Return Fund (AVGAX)
Performance (1-YR): 7.32% Expense Ratio: 1.50%
DWS Select Alternative Allocation Fund (SELAX)
Performance (1-YR): 1.45% Expense Ratio: 1.73%