Interesting new quantitative mutual fund

I don't often mention mutual funds but this new fund by Janus is a global fund that basically fades extreme moves in stocks and bonds. The strategy is purely quantitative.

https://www.janus.com/retail/funds/janus-adaptive-global-allocation-fund

 

So a mean reversion fund. I'm surprised this is actually a new thing.

 

For a mutual fund? It's pretty rare. There is a growing number of "alternative" mutual funds out there now. But they are hard to find. Mom and pop types simply don't understand them and shy away.

 

Sorry you're entirely correct that this is new for a mutual find. Even though you originally stated it quite clearly I somehow translated fund and Janus into hedge fund.

 

Well right after I started this thread, I found another one. LOL. This one is an ETF led by Blair Hull.

http://www.businesswire.com/news/ho...-Allocation-Launches-ETF-Product#.VY9nMkYefiW

 

I would characterize it as an "overbought/oversold" strategy, not mean reversion.

 

Looks like investor confidence is at an all time high!

 

"...HTUS is driven by a proprietary, patent-pending, quantitative trading model..."

Patent-pending? Seriously?

 

I wouldn't recommend investing in a "black box" strategy. Do it yourself with simple algorithms like Buy when close has decreased 7 days in a row and close > 200MA, or Buy when 10-day Fisher Transform < -7 and close > 200MA. You will need to add some risk and money management rules in to the strategy.

For an expense ratio of 1.33%, you could do better yourself. Of course if you have better things to do with your time, "if you want to play, you have to pay."