He also had stakes in three bear market funds, which profit from declining stock prices.
Which country funds should be in your portfolio right now, and should you hold bear market funds?
And the omens from the last real bear market for hedge funds, 40 years ago, are far less encouraging.
Surely that's one reason Schwab could raise NTF fees by 0.05 points to 0.4% early last year, even though funds were still reeling from the bear market.
With most of the country's major lenders discovering billion-dollar losses linked to bad mortgage debt as the US housing market collapsed, investment banks such as Bear Stearns needed government funds ahead of being sold off cheaply, while another, Lehman Brothers, was ultimately closed down.
The right ETFs and funds can keep your portfolio growing even in a bear market.
The example of bond mutual funds, which suffered huge redemptions because of a bear market in corporate bonds, suggests not.
Our ratings for domestic stock funds look at long-term performance over four bull and bear market cycles stretching back 12 years.
After all, they stand as high valuation properties that hedge funds short axiomatically if they believe we're in a bear market.
And attempts by Merrill Lynch, one of the prime brokers to the Bear Stearns funds, to sell some of their assets showed how illiquid the market for such securities had become.
Before Marketocracy, Kam was the founder and chief investment officer of Firsthand Funds, a firm he sold right before the 2000-2002 bear market.
It may feel safe to put your money in the top performing funds in a bull market or into cash and bonds during a bear market, but both are actually riskier than they seem.
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Trillions of dollars have entered into the bond market through mutual funds over the past decade, as investors sought safety after the equity bear markets of 2000-2002, and fueled further by the broad stock market collapse in 2008.
The brokers may have been pledged collateral against their hedge-fund loans but, as Merrill Lynch recently discovered in its dealings with two Bear Stearns hedge funds, it may not be possible to sell that collateral for anything like the current market price.
The top performing funds hold stocks with healthy growth potential and resilience, making them the best bets in a bear market.
Pension funds and insurance companies in the developed world have become more cautious (thanks to regulation and the bear market of 2000-02) and are increasingly buying bonds in an attempt to match their liabilities.
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