In his comments, David described the BlackRock marketing of the BlackRock Emerging Markets Long/Short Fund (BLSAX). Despite the marketing efforts, its performance since inception was underwhelming. However its close relative BlackRock Global Long/Short Equity Fund (BDMIX) seems to be quite interesting. It is only one year old, so one may wonder what will happen in the future and why it is so much better than BLSAX if it uses a similar strategy (in the developed markets)? But let us look at it anyway.
If one plots simultaneously BDMIX (blue line) and VT (Vanguard Total World Index, green line), and general market neutral funds (red), one finds that BDMIX during the one year of its existence produced essentially the same returns as VT, but with a much smaller volatility, even much smaller than MFLDX, which is one of the absolutely best global long/short funds. And it is way better than average market neutral funds.
An obvious problem with BDMIX is that it has $2M minimum, and its more accessible brother BDMAX has high sales load, but in general it is a very intriguing fund. If it were possible to buy it without load I would consider it very seriously. I wonder whether you have an opinion on this impressive newcomer?