Several “Exotic” Alternatives Perform Badly

Posted on December 23rd, 2013 at 10:00 AM

 

Alternative investments which can provide higher yields and less risk than bonds offer, and can provide lower volatility than equities. However, that is not always the case.  

According to Morningstar fund ranking, the five worst performing alternatives funds in 2013 are:

  • Rydex Inverse –S&P500 2X Strategy H (RYTPX),  an open-end fund seeking to provide investment results that correspond to 200% of the inverse (opposite) performance of the S&P 500 on a daily basis, with 1-year return of RYTPX of -33.67%, and 3 year return of -33.14%.
  • Grizzly Short (GRZZX), an open-end fund seeking capital appreciation and selling overvalued stocks short, with 1 year return of -22.33%, and 3 year return of 19.52%.
  • Comstock Capital Value A (DRCVX), an open-end fund seeking to maximize total return, consisting of capital appreciation and current income by  investing  in a wide range of asset classes and market sectors, with 1 year return of -21.83%, and  3 year return of  -18.89%.
  • Federated Prudent Bear A (BEARX), an open-end fund seeking capital appreciation by short selling equity securities when overall market valuations are high and long buying value-oriented equity securities when overall market valuations are low, with 1 year return of -21.66%, 3 year return of -16.81%.
  • Rydex Inverse S&P 500 Strategy Inv (RYURX), an open-end fund seeking to provide investment results that inversely correlate to the total return of the Standard & Poor's 500 Index, with 1 year return of -18.46% , and 3 year return of -17.36%.

Related Attorneys: James J. Eccleston

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