Every Stock Mutual Fund Has Lost Money in 2008, Except One

[girl gone mad]

Wow. Just... Wow.

http://www.businessweek.com/investing/insights/blog/archives/2008/11/every_stock_mut.html?campaign_id=rss_daily

Out of the 11,585 U.S. and international stock mutual funds tracked by Morningstar Inc., 11,584 have lost money in 2008, according to fund data through Nov. 20.

In other words, just one fund hasn’t lost money this year—and that is the APX Mid Cap Growth Fund, which was flat through Thursday’s close. That’s right, folks, its return—or lack thereof—is a mere zero thus far in 2008.

Annette Larson, who is Morningstar’s chief data cruncher, has worked at the Chicago firm since 1994. “I’ve never seen it this bad before,” she says. In fact, she was certain she made a mistake when she analyzed the most recent mutual fund data. “I thought to myself: ‘This cannot be right,’ so I did it again, and again, and then I realized all but one fund is negative. I’m in awe,” Larson says.

Not every fund company provides closing data to Morningstar on a daily basis, so there is a chance other funds are in positive territory for the year. But given the overall dismal return of stock funds in 2008, there is an even bigger chance those funds are down, too.

[CoffeeCat]

1. Yup...

One of the main reason that our 401k has lost only 15 percent, throughout the downturn.

I want to get out totally.

[earthside]

2. Not Sure That is Correct

Check out PBRCX - Prudent Bear.

I own it ... it is increasing in value ... big time.

It looks like Annette Larson and Morningstar have a very narrow view of what constitutes mutual fund.

[teotwawki]

3. BEARX is up as well

that one is saving us. It's another prudent bear fund.

[girl gone mad]

4. From the fund profile:

"The investment seeks capital appreciation. The fund seeks capital appreciation primarily through short sales of equity securities when overall market valuations are high and through long positions in equity securities when overall market valuations are low. It may hold more "short" equity positions than "long" equity positions when the dividend yield for the aggregate stock market is low relative to its historic range."

It's not technically a stock mutual fund since the find is primarily holding short positions in equities. There are many other non-stock funds and etf's that have shown returns, many by short selling equities, currency and bonds or going long treasuries.

[JohnWxy]

5. that's the only way you could have made money this year - short the market. Proshares offers

several ETFs (mutual funds the shares of which are traded on an exchange NYSE) some of which short various sectors of the market or the DOW, S&P, and even the Russell indexes.


On edit; I would't suggest shorting the market now, though. Best to wait things out in cash (i.e. near cash) until Obama gets in and then see how things start to look.