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Long/Short funds

Discussion in 'Managed Funds & Index Funds' started by redrover, 6th Aug, 2007.

  1. redrover

    redrover Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    131
    What a great time to have been in a long/short fund. Big drops in the market like now although providing good buying opportunities at some point, provided an upturn follows of a good magnitude, highlight the deficiencies of not having the ability to profit on the down side as well in the same fund.
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Although hardly conclusive at this point, and not strictly an accurate comparison, at least there is indicative evidence to show how well long/short funds (eg Platinum International) have performed in recent days versus long-only funds (Platinum Unhedged) in the attached charts.

    Platinum International is down 2.55% from its most recent high on July 10th, while the Platinum Unhedged fund is down 4.53% over the same period.
     

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