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.There's something oddly disturbing about this, particularly coming just days after major equity markets entered bear market territory.
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.