U.S. Mutual Fund Plunges 15% In Five Days On Bearish Stock Bets

Ted

FYI: It is the buzz of Wall Street: a five-day, 15% plunge in a U.S. mutual fund whose bearish bets were undone by the S&P 500’s latest run to fresh records.

The decline of Catalyst Hedged Futures Strategy fund, a $3.4 billion fund employing complex derivatives, is topic du jour on trading desks fixated on the surprising resilience of the post-election U.S. stock rally and the long decline of volatility, or price swings.
Regards,
Ted
http://www.marketwatch.com/story/catalyst-hedged-futures-plunges-15-in-five-days-on-bearish-stock-bets-2017-02-17/print

M* Snapshot HFXAX:
http://www.morningstar.com/funds/XNAS/HFXAX/quote.html

VintageFreak

Poor investors. They should have invested in HSGFX

Old_Joe

This story might be fake news. It's very doubtful that it happened, since I don't own any Catalyst Hedged Futures Strategy fund.

davidrmoran

+1

claimui

This fund has been talked about on this board:
http://www.mutualfundobserver.com/discuss/discussion/23366/winning-managers-in-alt-space-are-tough-to-find-hfxix-masfx
http://www.mutualfundobserver.com/discuss/discussion/10507/catalyst-hedged-futures-hfxix

On the plus side, I successfully ignored the hype and didn't buy into Catalyst Hedged Futures Strategy HFXIX.

On the down side, I bought Catalyst Macro Strategy MCXIX instead. -36% in 2016, ouch.