PIMCO StocksPLUS AR Short Strategy
In light of this, it seems fitting that the world’s top bond manager, Bill Gross, manages a fund that shorts the S&P 500 — the PIMCO StocksPLUS AR Short Strategy (PSSAX) fund.
The PSSAX has a twist, however. Gross uses futures to short the S&P, meaning he only needs to put a fraction of money down as margin for his positions. He invests the rest of the capital in bonds.
The strategy has worked so far. Again using the 2008 financial crisis as an example, PSSAX tallied a 47% return amid the S&P 500′s 37% decline.
AR Short Strategy charges 1.04% in expenses and a maximum 3.75% sales charge, and requires a minimum investment of just $1,000.