Hedged Mutual Funds Offer Much Needed Protection Says de Silva

Everybody needs to have some protection in their portfolio and hedged mutual funds provide a smart way to get that defensive characteristic, said Harin de Silva, President of Analytic Investors. Silva added that he likes health care and consumer staples on the long side because they offer stable earnings throughout the business cycle. Meanwhile, he said the equity sectors where he is seeing the most short opportunities are technology, financials and energy. Finally, Silva said he makes sure his short portfolio is diversified and monitors the news on his short candidates daily to avoid being squeezed.