In 1995, long-short funds began an impressive streak. For 13 consecutive years, the group made money, according to Morningstar. No stock category came close to matching that record. Even such safe bond categories as intermediate government and intermediate municipal posted some losing periods.During the late 1990s, the long-short funds attracted little notice. At a time when the S&P 500 was returning more than 20% annually, few investors cared about a vehicle that quietly delivered single-digit results. But in the difficult markets of this decade, the long-short funds began to stand out. In 2000, the funds returned 9.57%, 18 percentage points ahead of the S&P 500. The next year, the long-short portfolios returned 5.37%, outdoing the S&P by 17 points.
Long/Short Funds for the Long Haul
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