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) --


that invest in Asia, especially China, were among the worst-performing stock

mutual funds

in August.

Six of the 10 biggest laggards invested in China, while two more bought stocks more broadly in Asia, excluding for Japan. Inverse funds weren't included in the list.

Two of the funds doubled down with 200% negative leverage: the

Direxion China Bull 2X Fund


and the

Ultra China ProFund

(UGPIX) - Get Report

. They lost 13% and 10%, respectively.

While the Direxion fund is leveraged to the

FTSE/Xinhua China 25 Index

, the ProFund holds the American Depositary Receipts of stocks in mainland China and Hong Kong, including

China Mobile

(CHL) - Get Report



(PTR) - Get Report



(CEO) - Get Report

, and

China Unicom Hong Kong

(CHU) - Get Report


Telecommunications was the largest sector weighting of the China ProFund, with 14%. The portfolio has 12% of its assets in oil and gas stocks, and 10% in Internet shares.

Interestingly, the

Mobile Telecom UltraSector ProFund

(WCPIX) - Get Report

was the only fund that lost more than the China portfolios.

Sprint Nextel

(S) - Get Report

, the fund's biggest holding with 53% of its assets, fell 8.5% in August, when the

S&P 500 Telecommunication Services Index

declined 2.4%.

MetroPCS Communications


, its No. 2 position, lost 31%. Phone makers


(AAPL) - Get Report



(NOK) - Get Report

, and EXCHANGE="NYSE" PRIMARY="NO"/>, in contrast, gained 3.3% and 7.7%, respectively.

-- Reported by Kevin Baker in Jupiter, Fla


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Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.