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The phrase "bear funds" is not grammatically correct or commonly used in written English.
It is likely a mistranslation or misunderstanding of the phrase "bear market," which refers to a period of declining stock prices. Example: "Investors are wary of putting their money into the stock market during a bear market, as bear funds can lead to significant losses."
Exact(52)
There are some very good actively managed bear funds available, like Prudent Bear (BEARX), on our top-rated funds list.
Bear funds come in two distinct breeds.
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.
He described the approach of the bear funds — selling short or buying puts — as tactical.
Similar(8)
So he is not currently recommending his own bear fund, Grizzly Short, which bets against stocks.
Prudent Bear was the top-performing bear fund in 2000, returning 30.5percentt, and in 2002, rising 62.9percentt.
A LONG-TERM investor who did focus his holdings on a bear fund would have had substantial losses.
"If you think the market has reached a top, you might be tempted to put some money in a bear fund," he added.
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.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com