May's Top Hybrid Fund Finds Undervalued Stocks

The top hybrid funds for the month of May utilized various strategies to generate their monthly returns.

The Greenspring Fund(GRSPX Quote) is based on a strategy of finding undervalued stocks and special situation bonds.

This type of strategy may be worth keeping in mind if markets continue to slide and more specific strategies, such as value investing and special situations, which have more to do with a misalignment of prices than valuation of securities, come into vogue.

The value approach, if implemented correctly, should avoid paying too high a price, and is long term in nature. This combined with special situations, which generally offer the ability to profit short term from the misalignment of security prices, can complement each other -- a very Warren Buffett-like combination. ...