Long-short is a popular investing strategy that traders use to outperform the market. As the word suggests, such a strategy involves an investor taking a long position in the stocks that are expected to gain and short positions in the stocks that are overvalued. Thus, such a strategy allows an investor to minimize market exposure, and at the same time profit from the long positions, as well as from the short positions. Because of this, such a strategy is very popular among investors, providing them with a much broader set of opportunities. If you are also planning to benefit from this strategy, then to help you choose one, detailed below are the ten biggest long short mutual funds.
Ten biggest long short mutual funds
This list is not based on the returns of these funds, rather their total assets. So, here are the ten biggest long short mutual funds:
- Neuberger Berman Long Short Fund (NLSAX)
Neuberger Berman Long Short A has an inception date of December 2011. The fund is managed by Kantor Regenbaum and its total assets are $4 billion. This fund uses long or short position in common stocks, preferred equity securities, futures contracts and call and put options. It has an expense ratio of 2.140% and its YTD return is 12.21%, while in 2019, it returned 16.74%.
2. AB Select US Long/Short A (ASLAX)
During normal times, the fund invests a minimum of 80% of its net assets in the U.S. equities, cash and cash equivalents. It focuses on equities with large and medium market capitalizations, but may invest in small cap companies as well. They may also invest in non-U.S. companies. This fund has an inception date of December 2012 while its total assets are $1.2 billion. Its expense ratio is 1.950%, while its YTD return is 6.07%.
3. Weitz Partners III Opportunity Instl (WPOPX)
It is a "multi-cap" fund that may invest in securities of any market capitalization. This fund has an inception date of January 2006 and its total assets are $564.2 million. Its expense ratio is 1.440%. YTD return of the fund is 4.37% while in 2019, it gave a return of 34.22%.
4. Blackrock Long Short Equity Fund (BDMIX)
The total assets of the Blackrock long short equity fund (inception date December 2012) are about $524.6 million. This fund studies the latest economic data to decide on the stocks to buy and sell, in order to outperform the market. It has an expense ratio of 1.58%, while its year-to-date return is -0.85%.
5. Alger Dynamic Opportunities Fund (SPEDX)
Alger Dynamic Opportunities A invests in U.S. and foreign equity securities. It may also invest in the equity of small capitalization companies, as well as the securities not listed on an exchange. Founded in November 2009, it has total assets of $451.7 million, while its expense ratio is 2.0%. Its YTD return is 36.46% and its five-year return is 75.96%.
6. AQR Long-Short Equity N (QLENX)
The objective of this fund is to offer higher risk-adjusted returns with less volatility than the global equity market. Also, the fund aims to beat the benchmarks by choosing stocks on the basis of “value, momentum, and quality.” Total assets of the fund are $414.7 million, its expense ratio is 1.57%, while its YTD return is -17.17%.
7. Toews Tactical Monument (THLGX)
With an inception date of June 2010, this fund has total assets of $147.7 million. It invests mainly in U.S. large-cap stocks, investment-grade fixed income securities, cash equivalents and U.S. treasury securities. This fund has an expense ratio of 1.310%, while its YTD return is 22.08%.
8. Thornburg Long Short Equity Fund (THLSX)
Founded in December 2016, Thornburg Long/Short Equity I has total assets of $29.7 million. Its expense ratio is 3.470% while its YTD return -9.17% but in 2019 it gave a return of 8.50%. This fund, which is managed by Shah MacDonald, may put the money in any equity that the fund manager believes would help in pursuing its investment goal.
9. LoCorr Long Short Equity Fund (LEQAX)
LoCorr Dynamic Equity Fund Class A (LEQAX) tries to match the performance of the S&P 500. Under normal market conditions, this fund invests a minimum of 80% of its assets in long or short positions in the domestic and foreign equities. The inception date of the fund is May 2013. It has $17.3 million in total assets, while its expense ratio 3.040%. YTD return of the fund is -5.09%, while in 2019, it earned a return of 13.40%.
10. AXS Alternative Growth A (EEHAX)
The largest long short mutual fund aims to get returns and volatility similar to the S&P 500, but at the same time avoiding the downside risk. It basically follows two investing strategies – the Equity Strategy, and the Overlay Strategy. This fund has an inception date of September 2013 and its total assets are $6.5 million. It has an expense ratio of 1.240%, while its YTD return is -1.74%. In 2019, it gave a return of 36.21%.