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Pastimes : Prudent Bear Fund (BEARX): contrarian investing -- Ignore unavailable to you. Want to Upgrade?

To: Marc Phelan who wrote (287)	8/5/1998 6:47:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 793

The gyrations of BEARX never make a perfect mirror reflection of the indices. For example, today, the NASDAQ is UP --but so is BEARX. It is true that BEARX is in some sense a "wasting asset": transaction fees and foregone interest, plus losses on worthless puts, erode the capital. Its best use is as insurance. Homeowners insurance is also a wasting investment unless the house burns down. I am still hoping to end up with 25% more than what I have put into the fund, and to reinvest that in long holdings at much lower prices. It remains to be seen if that works. Most bears would be better off with just plain cash.