Open Question

Vanguard Market Neutral Fund Investor Shares (VMNFX)
The fund seeks to meet its investment objective by purchasing shares of stocks
that its advisors consider undervalued and selling short an approximately equal
dollar amount of stocks considered overvalued.

Sounds interesting. One little catch - you need $250,000 to open an account.

Q. how hard for an individual Pickr to pull this off strategy? How many stocks
do you need?
thanks, FF

Asked by FFoot1945 2 months ago - 2 answers - 40 views
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Most if not all market neutral funds do not have a very good track record. If
the pros have a hard time pulling it off, why even attempt it as a homegamer??
If you want to attempt it, do so through options, buying calls and puts. Would
take a lot more homework and I wouldn't commit a lot of capital to it unless you
became wildly successful at it.

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If you don't got it, don't sweat it. Here are the top ten holdings for that
fund as of 2/29/2008:
Interational Business Machines
Pfizer
Bristol Myers Squibb
Verizon Communications
Genzyme Corp
Am. International Crop
Amazon.com
The Hartford Svc Group
MEMC Electronics Materials

So, just like you look at the fashion on the Paris runway, and then go buy
something in your budget at the Gap (or wherever)...you just invest like they
do, only with amounts you can afford. The only caution is that this was listed
on their website as being of 2/29/2008, so it looks like it is an actively
managed fund where these things can change quickly. So, just like with every
stock, do your homework.

I am loving this list, because it has Pfizer on it, and that stock has been
dogging me but if they have it, it must be hot and a buy, buy, buy right now
because as Guy Adami said, Pfizer has got to get a pipeline. I wonder if
Genzyme is the pipeline? Guy had once recommended that they buy that one but
other people say they should try for Celegene.

Anyhoos, go get it! Good luck!
Kathy in NJ

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