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Strikingly, some of the biggest flops came from superstars: Bruce Berkowitz, whom Morningstar named one of the money managers of the past decade, saw his flagship fund fall more than thirty per cent; the hedge-fund manager John Paulson, whose bet against mortgage-backed securities a few years ago has been called "the greatest trade ever," saw one of his funds drop nearly fifty per cent.
We feel it is highly unlikely that we will see the price of any large, established money market fund fall under $1/share.
Put buyers at this strike make money if shares of the fund fall 4.7% to breach the average breakeven price of $44.30 by expiration day in January.
Maximum potential profits of $2.21 per contract are available to the investor should shares of the fund fall 13.30% from the current price to $32.00 ahead of expiration.
If this is the case, downside protection kicks in should shares of the fund fall 10.75% from the current price to breach the effective breakeven point on the spread at $39 in the next several months to expiration.
Thus, the investor stands ready to make money should shares of the fund fall another 3.5% to breach the effective breakeven point on the spread at $39.08 by November expiration.
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The Global Technology fund fell 36.4percentt in 2000.
The average international stock fund fell 19.8percentt.
The average international stock fund fell 17.8percentt, according to Morningstar.
His fund fell 27percentt last year, according to Alpha.
The Harbor Real Return Strategy Fund fell 4percentt last year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com