FYI: Investing is all about balancing risk and reward, so it’s only fitting that Charles Kantor considered that equation when he left his native South Africa for New York City in 1992. “I would either find work or run out of the $2,000 I had and go back to Cape Town,” says Kantor, who was fresh out of the University of Cape Town’s business commerce program.
After pounding the pavement, he landed a consulting position with Stern Stewart & Co., a firm that pioneered the concept of economic value, a measure of a company’s true profits. And, in time, he parlayed that experience into investing.
Rising volatility and dispersion among equities’ performances mean more chances to bet against individual stocks, Kantor says.
More than two decades later, Kantor’s early observations about how companies allocate capital and reward performance influence his decisions as manager of the $3.3 billion Neuberger Berman Long Short fund (ticker: NLSAX). As of Tuesday, the fund was up an average of 8.7% a year since its late-2011 inception, versus 5.7% for its benchmark, the HFRX Equity Hedge Index. Moreover, the fund has one of the highest Sharpe ratios—a measure of risk-adjusted returns—in its Morningstar long-short category. With a ratio of 1.92 for the three years ended on Jan. 31, the fund ranks in the top 1% of all equity and alternative mutual funds by this measure
Regards,
Ted
http://online.barrons.com/articles/a-neuberger-berman-fund-adding-gains-curbing-pains-1426297142#printModeM* Snapshot Of NLSAX:
http://quotes.morningstar.com/fund/nlsax/f?t=NLSAXLipper Snapshot OF NLSAX:
http://www.marketwatch.com/investing/Fund/NLSAX?countrycode=USNLSAX Is Unranked In The (L/S) Fund Category By U.S. News & World Report;
http://money.usnews.com/funds/mutual-funds/long-short-equity/neuberger-berman-long-short-fund/nlsax
