When Hedge Funds Convert to Mutual Funds
It’s best to ignore their preconversion histories.
There goes my chance to join Paul the Octopus, Carnac the Magnificent, and Jim Cramer on the list of the world’s great forecasters. In early January, I started to write a column on how some mutual fund track records might be other than they appear, citing as an example Catalyst/Millburn Hedge Strategy Fund (MBXIX). But vacation approached, the topic needed more work, and I set the topic aside.
Boom! Last week, the fund’s sibling, Catalyst Hedge Futures Strategy Fund (HFXAX), dropped 15% in five trading days. Opportunity squandered.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.