A Contrarian Fund Manager Bets Against Emerging Markets

Given the volatility of stocks in recent years, very few hedged mutual funds have lived up to their promise of protecting investors on the downside while generating positive results on the up. The Icon Long/Short Fund, for example, fell 39.9 percent in 2008, more than the S&P 500's 37.0 percent. It also lagged during the recovery, rising only 15.4 percent in 2009, compared with the S&P's 26.5 percent. Portfolio manager Michael Aronstein’s Marketfield Fund, by contrast, outperformed the S&P in both of those years.

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