#1 Worst Mutual Fund: Federated Prudent Bear
YTD Return: -16%
Federated Prudent Bear (MUTF:PBRCX), a mid-cap growth fund, has a strategy of short selling some U.S. equities while holding long positions in others, with the short positions predominant in the portfolio.
Manager(s): Ryan Bend has been lead manager on PBRCX since December 2008 and specializes in selecting securities for the short portion of the PBRCX portfolio.
Takeaway: It has been a bad year for bear market mutual funds, but PBRCX has had a tougher time than some of its peers in the category. It doesn’t help that the fund’s expense ratio of nearly 2.5% is significantly higher than the category average of just under 2%. There’s also PBRCX’s 1% load to consider.
As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned investments.