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.
In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But it’s easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the 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.
AQR Diversified Arbitrage Fund seeks to outperform the ICE BofAML U.S. 3-Month Treasury Bill Index while controlling its tracking risk relative to this benchmark. ADANX invests in a diversified portfolio of instruments, including equities, convertible securities, debt securities, loans, warrants, options and swaps.
AQR Diversified Arbitrage Fund has three-year annualized returns of 9.2%. As of March 2023, ADANX held 215 issues, with 62.3% of its assets invested in TOTAL SHORT TERM INVESTMENT.
Calamos Market Neutral Income Fund invests mainly in convertible securities and employs short selling to enhance income and hedge against market risk. These convertible securities may be either debt securities or preferred stocks that can be exchanged for common stock.
Calamos Market Neutral Income Fund has three-year annualized returns of 3.1%. John P. Calamos has been one of the fund managers of CVSIX since1990.
Hussman Strategic Growth Fund typically invests all of its assets in common stocks picked by investment advisors, except cash needed for its day-to-day operations. HSGFX may use options and index futures, and other hedging strategies, to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fund has three-year annualized returns of 3.1%. HSGFX has an expense ratio of 1.13% compared with the category average of 1.92%.
Image: Bigstock
3 Market-Neutral Funds to Dodge Market Volatility
In a volatile stock market, investors usually focus on a long-term strategy, which keeps them protected from concurrent ups and downs. But it’s easier said than done, and adding market-neutral funds to their portfolio often bails them out in terms of hedging their risk in the 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.
Below, we share with you three top-ranked market-neutral funds, viz., AQR Diversified Arbitrage Fund (ADANX - Free Report) , Calamos Market Neutral Income Fund (CVSIX - Free Report) and Hussman Strategic Growth Fund (HSGFX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of market-neutral funds.
AQR Diversified Arbitrage Fund seeks to outperform the ICE BofAML U.S. 3-Month Treasury Bill Index while controlling its tracking risk relative to this benchmark. ADANX invests in a diversified portfolio of instruments, including equities, convertible securities, debt securities, loans, warrants, options and swaps.
AQR Diversified Arbitrage Fund has three-year annualized returns of 9.2%. As of March 2023, ADANX held 215 issues, with 62.3% of its assets invested in TOTAL SHORT TERM INVESTMENT.
Calamos Market Neutral Income Fund invests mainly in convertible securities and employs short selling to enhance income and hedge against market risk. These convertible securities may be either debt securities or preferred stocks that can be exchanged for common stock.
Calamos Market Neutral Income Fund has three-year annualized returns of 3.1%. John P. Calamos has been one of the fund managers of CVSIX since1990.
Hussman Strategic Growth Fund typically invests all of its assets in common stocks picked by investment advisors, except cash needed for its day-to-day operations. HSGFX may use options and index futures, and other hedging strategies, to balance the fund’s exposure during unfavorable market conditions.
Hussman Strategic Growth Fund has three-year annualized returns of 3.1%. HSGFX has an expense ratio of 1.13% compared with the category average of 1.92%.
To view the Zacks Rank and the past performance of all market-neutralfunds, investors can click here to see the complete list of market-neutral 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 >>