http://allaboutalpha.com/blog/2007/09/28/update-morningstar-finally-puts-on-shorts/ A finance blog about hedge funds, portable alpha and alternative investing. Thu, 09 Feb 2012 19:03:08 +0000 http://wordpress.org/?v=abc hourly 1 http://allaboutalpha.com/blog/2007/09/28/update-morningstar-finally-puts-on-shorts/comment-page-1/#comment-30791 Jay Compson Tue, 02 Oct 2007 21:33:50 +0000 http://allaboutalpha.com/blog/2007/09/28/update-morningstar-finally-puts-on-shorts/#comment-30791 Morningstar may have shorts, but they don't know how to analyze them. This week's Investment News article "Pride of the Quants" quotes a Morningstar analyst saying, "130/30 funds were able to maneuver through August volatility unscathed." Why? Because they were flat for the month? Given that these products have an average beta of 1.0 to the S&P 500, that means the "30/30 part" was DOWN 5% for the month! Hardly "maneuvering unscathed" and much worse than market neutral funds. Morningstar may have shorts, but they don’t know how to analyze them. This week’s Investment News article “Pride of the Quants” quotes a Morningstar analyst saying, “130/30 funds were able to maneuver through August volatility unscathed.” Why? Because they were flat for the month? Given that these products have an average beta of 1.0 to the S&P 500, that means the “30/30 part” was DOWN 5% for the month! Hardly “maneuvering unscathed” and much worse than market neutral funds.

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