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I don't believe Morningstar ever considered it a market neutral fund. In fact, Morningstar no longer even considers long-short equity funds like this alternative funds as most have too much beta exposure or correlation to the market.
But on closer examination, that’s a horrific YTD return, likely made worse by rapid outflows. Reminiscent of something similar here involving MFLDX many years ago. Rats fleeing a sinking ship. My heart goes out to those who lost money in this.
Call it “Short end of the stick” maybe.
Names don’t tell you much. I have a dab in QMN which is probably closer to being “market neutral” - as it doesn’t seem to go anywhere …
RLSFX - RiverPark Long/Short Opportunity Fund Retail Class
Trying to NOT put salt in your wounds, BUT...
I think we should all be able to agree that no, it "is not really a market neutral fund."
You would think that the fund name alone would confirm that.
But if the name alone doesn't do it, M* has classified it as a Long/Short fund since its inception in March 2012.
Then there are its holdings that include 67% LCG and 21% MCG. No hint of "market neutral" there.
So is the "One 2022 Mutual Fund Lesson" maybe that we as investors should understand (or at least have some clue) what it is we are invested in?
If so, why would that be a "2022 Lesson"? Isn't that a lesson investors should have learned somewhere around the time of their very first investment? For me, that was 1980.
And no need to create a new "Beta-plus" category. Doesn't "long/short" in the name of the fund already imply that?
The March commentary reads like Cathie Wood on steroids. Generational opportunity in the current portfolio. I hold out hope, but what a shellacking YTD! That being said, it's the type of fund that can make up 15% in a week.
The March commentary reads like Cathie Wood on steroids. Generational opportunity in the current portfolio. I hold out hope, but what a shellacking YTD! That being said, it's the type of fund that can make up 15% in a week.
And there’s nothing wrong having a few sticks of dynamite in your portfolio - as long as you know it’s there! For dealing with high explosives I might prefer a stock - or two or three - over a fund.
Not a recommendation, but I’m using QLS as a long / short fund. It’s off a bit over 6% YTD and about even over one year. The problem with any LS is that the manager has to determine which stocks to short and which ones to go long on … (Duh)
BIVRX pretty good too, but I could see it having the same problem as RLSFX in a different environment. When you get BOTH your L and S wrong, you're screwed!
Comments
Although not mkt-neutral, caution applies as those are 50-50 L-S & things can be bad on both sides.
But on closer examination, that’s a horrific YTD return, likely made worse by rapid outflows. Reminiscent of something similar here involving MFLDX many years ago. Rats fleeing a sinking ship. My heart goes out to those who lost money in this.
Call it “Short end of the stick” maybe.
Names don’t tell you much. I have a dab in QMN which is probably closer to being “market neutral” - as it doesn’t seem to go anywhere …
RLSFX - RiverPark Long/Short Opportunity Fund Retail Class
Trying to NOT put salt in your wounds, BUT...
I think we should all be able to agree that no, it "is not really a market neutral fund."
You would think that the fund name alone would confirm that.
But if the name alone doesn't do it, M* has classified it as a Long/Short fund since its inception in March 2012.
Then there are its holdings that include 67% LCG and 21% MCG. No hint of "market neutral" there.
So is the "One 2022 Mutual Fund Lesson" maybe that we as investors should understand (or at least have some clue) what it is we are invested in?
If so, why would that be a "2022 Lesson"? Isn't that a lesson investors should have learned somewhere around the time of their very first investment? For me, that was 1980.
And no need to create a new "Beta-plus" category. Doesn't "long/short" in the name of the fund already imply that?
Not a recommendation, but I’m using QLS as a long / short fund. It’s off a bit over 6% YTD and about even over one year. The problem with any LS is that the manager has to determine which stocks to short and which ones to go long on … (Duh)