Bear Funds

Funds that utilize short-selling methods to quickly makeprofits during a bear or declining market. These funds are usually made up of hedge funds and mutual funds. They are actively managed, and short individual stocks or inverse-index funds that short entire indexes. Bear funds revolve around the idea of playing with both sides of the market so that gains in the bear fund offset losses elsewhere in aninvestor’s portfolio. Bear funds are considered tacticalinvestments, but usually end up being lousy long-terminvestments for investors.