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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Chuck Rubin who wrote (8198)	8/29/1999 1:16:00 PM
From: marc ultra	Read Replies (1) \| Respond to of 15132

Chuck, If you wish to hedge part of your portfolio rather than sell besides shorting things like SPY or QQQ you can buy a fund that shorts the market.Rydex Ursa I believe functionally shorts the S&P500 as does ProFunds Ultrbear which functionally shorts the S&P500 on a 2beta basis so the fund should rise around 2% for each drop of 1% in the S&P500. Similarly Profunds UltraShort OTC functionally shorts the NAZ100 on a 2beta basis. I believe Bob has not mentioned the ProFunds, one reason might be the expenses may be a little higher than he cares for and he may prefer the flexibility of shorting SPYders and QQQ's along with their low expenses. I would say that a big advantage of the 2beta short funds is it only takes half the funds to get the same bang for your buck which is what I like about them. Finally if you are holding an S&P fund or SPYders, a Nasdaq100 fund or QQQ's I suspect any hedge that directly involves these indexes may run up against the short against the box tax rules as discussed earlier here and that should be taken into account and understood before doing any such hedge. Marc