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"One bet soundly considered is preferable to many poorly understood." - John Maynard Keynes
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In The NewsTaming Volatility while Enhancing Portfolio Returns By producing consistent returns along with attractive risk and volatility measures, long-short funds are able to generate superior risk adjusted returns. Two metrics that assess performance and risk together are the Alpha figure and Sharpe ratio. Alternative mutual funds: The Feeling is mutual Investors now seem hungry for products that shield them from market swings, as alternative strategies should, but that lack hedge funds’ most infuriating traits. Mutual funds have neither lockups nor fees of one-fifth of profits.
The fund aims to outperform the S&P 500 Index with lower risk through a long-short, primarily
Recently, U.S. News spoke with Kaimowitz about his fund, which is up 9.5 percent year to date (including its preconversion performance), and about the gradual erosion of the long-standing separation between hedge funds and mutual funds.
Institutional investors have long used private equity and hedge funds to achieve overall returns far higher than those eked out by individuals. Hedge Fund Backlash` Rohit Vohra, director of research for Mount Yale Capital Group in Minneapolis, is one financial professional who is impressed by the Bull Path Fund. "In general, long-short funds provide the kind of diversification you are looking for," he says. "As a group, correlation drops in down markets for stocks. With many other asset classes, correlation increases in bear markets."
The 10 alternatives to alternative investments Long-Short The original form of hedge fund investment. While the hedge fund industry has done much to obscure that proud history, the approach of buying what you like and shorting what you don’t like is pretty logical. While there are similarities in style to hedge funds, Long-Short mutual funds do not use as much leverage (that level is capped by law), keep costs reasonable and are very often more tax-efficient than hedge funds. They also offer daily liquidity. Bull Path's Kaimowitz: Valuations will get squeezed The strong likelihood that both interest rates and taxes are rising will soon put a squeeze on company valuations, according to Rob Kaimowitz, portfolio manager and chief executive of Bull Path Capital Management LLC.
Rob Kaimowitz, founder of Bull Path Capital Management, first came up with the idea to convert one of his long-short hedge funds into a mutual fund back in October of 2008, just after the collapse of Lehman Brothers investment bank, and just before news of Bernie Madoff’s Ponzi scheme broke. Investors of all stripes, burned by severe losses in even the most diversified investment portfolios, have been craving downside protection as they wade back into the markets.
Alternative assets are a good diversification tool because they're generally not correlated to the stock market.
For retail investors who want to put money into the hedge-fund-like vehicles, the options continue to grow.
The SEC has granted the new Bull Path Long Short Fund, which has received a top Lipper Leader rating of 5, to report the hedge fund’s previous performance as the actual past performance of the mutual fund.
Rob Kaimowitz, founder of long-short hedge fund Bull Path Capital Management, has a new formula for success in the industry. He has converted one of the firm’s long-short equity hedge funds to a long-short equity mutual fund.
The severity of today’s ongoing bear market means more financial advisors are rethinking the conventional wisdom. As risky as new approaches often appear at their outset, it’s clear that investors also take a risk by relying on the old buy-and-hold approaches and believing that “diversification” just means owning different sizes and types of stocks and bonds. By, Andrew Roger. |
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