During bull markets, the Active Bear fund seeks stocks it believes will underperform.
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For the second year in a row David W. Tice, manager of the Prudent Bear fund, offered the best short.
He's been playing defense since earlier this year, and his model portfolios are partially hedged against a downturn with a bear fund.
Some of these leveraged ETFs were introduced in November 2008, including the Direxion 3X Daily Bull Fund (NYSE: FAS) and Direxion 3X Daily Bear Fund (NYSE: FAZ), and these funds could not have had the assets under management to really affect market moves to the extent we were seeing in late 2008, and 2009.
It remains an open question as to how much pressure the SEC will bring to bear on fund companies and fund directors.
The Bear Stearns fund performance "reflects the unprecedented declines in the valuations of a number of highly rated (AA and AAA) securities, " Bear Stearns told investors in a letter circulated late Tuesday.
There is, however, a mutual fund that makes the bet for you: Access Flex Bear High Yield Fund.
Two were two mid-level Bear Stearns hedge fund managers who were prosecuted for fraud and acquitted.
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News earlier this week that a third Bear Stearns hedge fund, laden with mortgage debt, might be faltering raised even more concerns about the company.
Two former Bear Stearns hedge fund managers were arrested Thursday morning.
Notwithstanding some recent high-profile setbacks, like the f ailed prosecution of former Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin, the feds usually win.
In 2009, a federal jury in Brooklyn found Bear Stearns hedge fund managers Ralph Cioffi and Matthew Tannin not guilty on six counts of conspiracy and fraud.
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While he was trading on the information for himself and Lyford Cay fund, a Bear Stearns colleague, Robert Babcock, 33, figured out the trading patterns and began to mimic Franklin's trading for his own account.
So far, government prosecutors have mostly focused on the lower level contributors to the current financial meltdown, such as mortgage brokers who approved fraudulent applications, and some hedge-fund managers at Bear Stearns who allegedly misrepresented the health of their funds.
For example, one insider told me back in March 2008 that he spoke with a hedge fund honcho who bragged about the profits he made by shorting Bear Stearns shares as it orchestrated a massive withdrawals of hedge fund money from the now defunct Wall Street firm.
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Federal prosecutors lost a jury trial against two former Bear Stearns Cos. hedge-fund managers accused of lying to investors about how they invested their assets.
Fidelity chief Edward Johnson III, who has heard plenty of grousing from mutual fund investors during the bear market, has a new round of gripes to cope with.
Franklin traded for his own accounts and that of Lyford Cay, a hedge fund he managed at Bear Stearns whose investors were several senior managers of the firm, according to the SEC.
Croft Value received a B rating for both bull and bear markets in FORBES' most recent quarterly fund ratings.
"Our highest priority is to continue to earn your trust and confidence each and every day, " Bear Stearns wrote in a note to hedge fund clients.
Neil is chairman of Hennessy Advisors and the manager of the Hennessy Focus 30 fund, which has defied the bear market with strong returns over one, three and five years.
Hennessy Advisors (otcbb: HNNA.OB - news - people ) and the manager of the Hennessy Focus 30 fund, which has defied the bear market with strong returns over one, three and five years.
It gets honor grades in both bull and bear markets from Forbes, and five stars from fund rater Morningstar.
"This is a conservative fund that should outperform in both bull and bear markets, " says Ward.
She worked at a hedge fund called New Castle, which was owned by Bear Stearns.
That trend is likely to accelerate, especially if a bear market takes hold, and get-rich-quick fund investors start getting poorer.
Lower growth than that would make the public debt harder to bear and scare off the foreign capital that India needs to fund its current-account deficit and pay for its imported energy.
For example, will the mutual-fund industry prove as lucrative if the stockmarket enters a bear phase?
Risk is captured in our fund survey by the separate grades for bull market and bear market results.
Ironically, many of its hedge fund clients pulling money out of their accounts could have been short Bear Stearns' stock at the same time, though no one has confirmed a connection.
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