Seattle Times – Investments that march to their own drummer, rather than in lock-step with the stock market, can protect a portfolio. That’s the goal of classic hedge funds \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d not the risky ones that grab headlines. But hedge funds usually require a minimum investment of $1 million or more and charge hefty fees.<\/p>\n
The mutual-fund industry offers dozens of funds that emulate this defensive strategy, with minimum investments as low as $1,000 and more modest expenses. In addition to taking traditional long positions, the funds sell some stocks short, hoping to profit from a decline in price.<\/p>\n
As the bull market enters its fifth year, these relatively new offerings, known as long-short or market-neutral funds, have gained in popularity as investors move to lock in gains. Last year, the funds took in $4.9 billion, growing to $16.5 billion, according to Financial Research.<\/p>\n