Hussman funds

[Martha]

Anyone know anything about the Hussman mutual funds? I know he has a strategic total return fund and a strategic growth fund. Comments?

[wildcat]

I saw the Hussman guy in an interview and they follow an asset allocation strategy. Like a lot of asset allocation funds the returns will depend on their ability to spot trends or shifts in certain market conditions (yikes). Their returns date back to the end of '00 and I am sure a lot fund managers look good since the end of '00 (avoided some of tech fallout and they were able to buy on the 9/11/01 dip). I would rather go with Vanguard which goes by more of a computerized/ratio method of calculating the best asset class and skip Hussman's expense ratio :P. One guy's fund I do respect in the asset allocation arena is Leuthold's "Market Neutral" or Core Fund. The guy (Steve Leuthold) is pretty sharp (from right there in MN ), has a long-term record and has done real well in terms of risk-adjusted returns. Fund has pretty much the same strategy as Hussman, preservation and growth.

[wildcat]

FYI Martha - they are probably not a true asset allocation fund by definition but I tend to label any fund that changes strategies according to market conditions as an asset allocation fund. They do shorts and options in an attempt to control risk so I don't know how comfortable you are with that

[Martha]

Thanks Wildcat. We are looking at mutual funds with hedge fund characteristics and Leuthold's fall into that category.

Anyone know about the Prudent Bear fund? BEARX?

[Nords]

Martha,

* * *Have you researched these at the FundAlarm discussion board and data tables?* If the funds have any dirt, Roy Weitz will dish it in the archives.* The discussion board also has several posters (Rono, UncleHarley, & Ed) who live to dissect funds and their performance.

[Martha]

Quote:

Originally Posted by Nords Martha, Have you researched these at the FundAlarm discussion board and data tables? If the funds have any dirt, Roy Weitz will dish it in the archives. The discussion board also has several posters (Rono, UncleHarley, & Ed) who live to dissect funds and their performance.

Thanks Nords, I will look there.

[wildcat]

Leuthold also offers a bear market fund

[haha]

Martha, Hussman used to publish a newsletter that I subscribed to. I also talked to him on several occasions. To me, he is very smart, completely consistent, and fairly realistc about what he might be able to do. He stays fully invested, with varying amounts of hedging against that position that he mostly does by buying puts and or selling calls on ETFs. (QQQQ, SPY, etc.) I believe at the present time he is bearish and pretty much fully hedged. So any return woulkd come mostly from the differential performance between his longs and his hedges.

He has a website where you can look at an archive of his weekly essays. IMO, these are excellent.

Mikey