Avoiding Mea Culpas With Alternative Assets

01/08/09 - 10:21 AM EST

Roger Nusbaum

The Diamond Hill Long Short Fund (DIAMX Quote), for example, dropped about 25% in 2008. That makes an argument for modest exposure. There is nothing that says funds that did well in the last bear market will do well in the next one, which is why RYMFX and DLSAX combine to account for less than 5% of the portfolios I manage.

The idea in going so small is to avoid the regrets expressed in the WSJ article. These things should work, but, of course, should does not ensure they will work. I've been preaching moderation long before the bear market started and will continue to do so in the future.
1 2 3
Next >
At the time of publication, GLD, DBA, DLSAX and RYMFX were client and personal holdings, although positions may change at any time.

Roger Nusbaum is a portfolio manager with Your Source Financial of Phoenix, and the author of Random Roger's Big Picture Blog. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Nusbaum appreciates your feedback; click here to send him an email.

Your Recent Quotes: Quote Up0 | Quote Down0
 
Dow S&P 500 NASDAQ
Oil*
65.43
8,280.74
896.42
1,796.52
10 Yr
3.50%
223.32
26.91
49.20
-2.63%
-2.91%
-2.67%
Data delayed 20 min
Get Jim Cramer's Free Newsletter

The Daily Booyah!
Get your daily dose of Cramer in your inbox.
Submit
We respect your privacy.

Premium Stock Ideas
Access Action Alerts Plus to find out Cramer's latest picks now!

Brokerage Partners