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So he is not currently recommending his own bear fund, Grizzly Short, which bets against stocks.
The company's Bear fund is intended to return the inverse of the S.& P. 500.
But by this point in the stock market rebound, the bear fund category -- the Prudent Bear fund being a notable exception -- has lost money over the last one, three and five years.
A LONG-TERM investor who did focus his holdings on a bear fund would have had substantial losses.
Prudent Bear was the top-performing bear fund in 2000, returning 30.5percentt, and in 2002, rising 62.9percentt.
"If you think the market has reached a top, you might be tempted to put some money in a bear fund," he added.
Similar(47)
There are some very good actively managed bear funds available, like Prudent Bear (BEARX), on our top-rated funds list.
Under those circumstances, the bear funds would all plunge.
Many bear funds had spectacular returns in 2000 and 2002, when stocks swooned.
Unlike the larger index-style bear funds, Prudent Bear is actively managed.
The bear funds can be used in two ways, Mr. Sapir said.
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