Wikinvest Wire

Fidelity adds a long-short fund

Wednesday, July 09, 2008

Word recently came via email that Fidelity Investments, one of the nation's top providers of investment products for retirement accounts, now has a long-short fund. What is a long-short fund? Here's an explanation:
The Fidelity 130/30 Large Cap Fund (FOTTX) is the first fund of its kind from Fidelity and allows investors to adopt an investment strategy "just like the pros". According to their literature on the new offering, investors can do the following:

Invest in a domestic fund that can capitalize on stocks going up -- and down.
By using "buy long" and "sell short" strategies, the fund takes full advantage of Fidelity's best thinking on which stocks may outperform and which may underperform the market.
There's something oddly disturbing about this, particularly coming just days after major equity markets entered bear market territory.
Full Disclosure: No position in FOTTX.

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dearieme said...

Oh goody, a new way to go broke.

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