Nakoma Absolute ReturnNARFX

Morningstar Rating

Fund Research and Analysis

by Benjamin N. Alpert, CFA

In the last two years it's been tough for most money managers to build a record worth talking about, but Nakoma Absolute Return is an exception.

This long-short fund opened its doors in December 2006, and its investors have seen growth in a period Read more

Kudos

Successful launch in a very difficult market environment.

Low correlation will isolate manager returns from market movements.

Despite its small size and short history, the management team has depth. Read more

Risks

The fund's short history provides little insight into its long-term outlook.

Large cash positions may indicate a dearth of investment ideas.

Using short positions assumes risks that long-only mutual funds avoid.

Macroeconomic bets can misfire. Read more

Strategy

The fund pairs a top-down asset-allocation approach, determining equity and sector exposure with internal valuation estimates in building the portfolio. The fund focuses on stocks on which its views Read more

Management

Managers Daniel Pickett and Mark Fedenia are collaborating on their first foray into open-ended mutual funds after previous stints together at institutional and hedge fund advisors. Fedenia is on the faculty of the University of Wisconsin and designs Read more

Inside Scoop

This fund opened to investors in December 2006. It offers a hedge-fund-like equity strategy. It allocates the portfolio between long and short equity positions, and can Read more

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