We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Top-Ranked Market-Neutral Funds to Tide Over Volatility
Read MoreHide Full Article
In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging risks in prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
Say, for instance, you take a $1 million long position in Pfizer and a $1 million short position in Wyeth, both large pharmaceutical companies. If pharmaceutical stocks fall, you will lose because of your long position in Pfizer but gain from your short position in Wyeth.
Below, we share with you three market-neutral mutual funds, viz. Hussman Strategic Growth Fund (HSGFX - Free Report) , Gabelli ABC Fund (GABCX - Free Report) , and Victory Market Neutral Income Fund (CBHAX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1(Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all market-neutral mutual funds, investors can click here to see the complete list of funds.
Hussman Strategic Growth Fund invests most of its net assets in common stocks that its fund's investment adviser favors. HSGFX advisors also invest in options and index futures, and other instruments to hedge portfolio risks in unfavorable market conditions.
Hussman Strategic Growth Fund has a three-year annualized return of 8.0%. As of the end of June 2022, HSGFX held 274 issues, with 1.83% of its assets invested in Alphabet Incorporated Class C.
Gabelli ABC Fund invests most of its net assets in securities of domestic and foreign companies that its investment adviser believes provide attractive opportunities for appreciation or generate investment income. GABCX advisors adopt measures to limit capital loss by utilizing various investment strategies, including investing in value-oriented common stocks.
Gabelli ABC Fund has three-year annualized returns of 1.5%. GABCX has an expense ratio of 0.81% compared with the category average of 1.90%.
Victory Market Neutral Income Fund seeks income by investing its net assets using a proprietary market-neutral investment strategy. CBHAX maintains a low correlation to foreign and domestic equity and bond markets.
Victory Market Neutral Income Fund has returned 1.4% in the past three years. Mannik S. Dhillon has been the fund manager of CBHAX since May 2018.
Image: Bigstock
3 Top-Ranked Market-Neutral Funds to Tide Over Volatility
In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But that is easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging risks in prevailing market conditions.
Market-neutral funds are designed to provide returns that are relatively unaffected by the state of the overall stock market. Adding these to the portfolio should boost returns and reduce risk. They typically deliver returns by combining long and short positions in various securities.
Say, for instance, you take a $1 million long position in Pfizer and a $1 million short position in Wyeth, both large pharmaceutical companies. If pharmaceutical stocks fall, you will lose because of your long position in Pfizer but gain from your short position in Wyeth.
Below, we share with you three market-neutral mutual funds, viz. Hussman Strategic Growth Fund (HSGFX - Free Report) , Gabelli ABC Fund (GABCX - Free Report) , and Victory Market Neutral Income Fund (CBHAX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1(Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all market-neutral mutual funds, investors can click here to see the complete list of funds.
Hussman Strategic Growth Fund invests most of its net assets in common stocks that its fund's investment adviser favors. HSGFX advisors also invest in options and index futures, and other instruments to hedge portfolio risks in unfavorable market conditions.
Hussman Strategic Growth Fund has a three-year annualized return of 8.0%. As of the end of June 2022, HSGFX held 274 issues, with 1.83% of its assets invested in Alphabet Incorporated Class C.
Gabelli ABC Fund invests most of its net assets in securities of domestic and foreign companies that its investment adviser believes provide attractive opportunities for appreciation or generate investment income. GABCX advisors adopt measures to limit capital loss by utilizing various investment strategies, including investing in value-oriented common stocks.
Gabelli ABC Fund has three-year annualized returns of 1.5%. GABCX has an expense ratio of 0.81% compared with the category average of 1.90%.
Victory Market Neutral Income Fund seeks income by investing its net assets using a proprietary market-neutral investment strategy. CBHAX maintains a low correlation to foreign and domestic equity and bond markets.
Victory Market Neutral Income Fund has returned 1.4% in the past three years. Mannik S. Dhillon has been the fund manager of CBHAX since May 2018.
To view the Zacks Rank and past performance of all market-neutral mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>