This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Can Mutual Funds Invest Like George Soros?

NEW YORK (TheStreet) -- George Soros and other star hedge fund managers famously made fortunes by betting on global trends. Global macro funds can range widely, holding foreign currencies one year and U.S. stocks the next. But the macro strategy is hard to execute, and not many managers have succeeded. Most mutual funds that have tried the macro game have failed and shut their doors. For mutual funds, the strategy is particularly difficult because managers cannot use the leverage that hedge funds employ.

Now two Wall Street veterans are trying their hands with macro mutual funds, and both managers are off to strong starts. Richard Bernstein, former investment strategist of Merrill Lynch, operates Eaton Vance Richard Bernstein All Asset Strategy EARAX. Brian Singer, former chief investment officer of UBS Americas, oversees William Blair Macro Allocation (WMCNX).

In recent months, Bernstein and Singer both made a series of on-target calls. Bernstein recorded big gains with small-cap U.S. stocks, while Singer scored with Japanese equities. During the past year, Bernstein's fund returned 11.5%, outdoing 90% of its peers in Morningstar's conservative allocation category. The William Blair fund returned 13.7%, topping 97% of competitors in the multialternative category. These days the two funds are following very different approaches. Bernstein is pounding the table for U.S. stocks, while Singer is emphasizing unloved European issues.

Each December Bernstein publishes his outlook for the coming year. In 2012, he made an on-target forecast, saying that U.S. stocks would climb while the emerging markets would lag. Bernstein based his prediction on the profits picture. During the 12 months that ended in November 2012, profits of the U.S. small stocks of the Russell 2000 grew 10%, while the emerging markets declined 3%. Since then, U.S. profits have continued climbing.

Must Read: First Eagle: Mutual Funds That Only Contrarians Can Love

Bernstein now forecasts that the U.S. will again outdo emerging markets in the coming year. In recent months, many U.S. companies have been matching or outdoing Wall Street's earnings estimates. In contrast, the emerging markets have been delivering earnings disappointments. In his mutual fund, Bernstein has 32% of assets in U.S. stocks and very little in the emerging markets. "We continue to believe that the U.S. stock market may be in the midst of one of the biggest bull markets of our careers," he says.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs