Loser: Federated Prudent Bear Fund
There’s a pretty easy way to determine whether a bear fund is doing poorly. Has the market done well? If so, your bear fund probably isn’t too happy about it.
The big player in the market — Federated Prudent Bear (BEARX), which is an actively managed short-selling fund — fell off nearly 13%.
Fund manager Doug Noland is a top short seller, but even the best of bears are hard-pressed to make money when the market’s in full bull mode. Consider that the average return for the past three years is a grisly -16%.
A-class shares have a hefty 1.74% expense ratio and are subject to a maximum 5.5% sales charge.