Federated Prudent Bear Fund Overview and Analysis

The Federated Prudent Bear Fund is a type of mutual fund that allows investors to gain exposure to bear market investments.

The fund is designed to invest in a portfolio of short positions, which means it aims to profit from declining markets.

The fund's investment objective is to provide a high level of current income, while also generating capital gains through short selling.

It invests in a variety of short positions, including stocks, bonds, and other securities, with the goal of minimizing losses during market downturns.

Additional reading: Bill Ackman Short

Fees and Charges are a crucial aspect of investing in a Federated Prudent Bear Fund. The total expense for this fund is 2.6144% of the Assets Under Management (AUM).

You'll also notice a breakdown of the fees into different categories. The management fee is 1.25% of the AUM, which is a relatively high fee compared to other funds in its category. The administrative fee is a more modest 0.10% of the AUM.

Check this out: Institutional Asset Management

The fund's expense ratio is 2.72% of the AUM, which is higher than the category average. This means that investors in this fund will pay more in fees compared to similar funds.

Here's a summary of the fees and charges:

It's worth noting that the 12b-1 fee is 0.00% of the AUM, which means that the fund does not charge a sales load. This can be a cost savings for investors.

The Federated Prudent Bear Fund has had a mixed performance over the years.

In 2024, the fund's return was -12.3%, which was lower than the category average.

The fund's performance was particularly strong in 2022, with a return of 17.8%. This was the highest return among the categories listed.

However, the fund's return was negative in 2023 and 2021, with losses of -18.7% and -23.8% respectively.

The fund's performance has been volatile, with returns ranging from -77.5% to 117.2% over the past few years.

Here's a breakdown of the fund's performance over the past few years:

The fund's returns have been ranked within its category, with a rank of 37.01% in 2024 and 40.94% in 2023.

The Federated Prudent Bear Fund is a unique investment option that allows you to invest in a bear market.

It has a low expense ratio of 0.95% per year, which is lower than many other actively managed funds.

This fund focuses on short selling and inverse investing, which can be a good way to profit from a declining market.

A unique perspective: Bear Fund

Concentration Analysis is a crucial aspect of investment analysis. It helps investors understand how concentrated a fund's portfolio is.

A fund with a high concentration of assets in a few holdings is riskier than one with a more diversified portfolio. In the case of the BEARX fund, we can see that its net assets are $120 million, which is relatively low compared to the category high of $2.1 billion.

The BEARX fund holds 162 stocks, which is a moderate number. However, its weighting of top 10 holdings is quite high at 92.93%. This means that a significant portion of the fund's assets are invested in just a few stocks.

You might like: Vanguard High Dividend Yield Etf

Here's a breakdown of the top 10 holdings in the BEARX fund:

As you can see, the BEARX fund has a significant concentration of assets in U.S. Treasury Bills, which makes up over 78% of the top 10 holdings. This is a relatively high concentration, which can increase the fund's risk.

Check this out: Vanguard Index Funds Returns

Dividend Yield Analysis is a crucial aspect of investment analysis. It helps investors understand the potential return on investment from dividend-paying stocks.

The dividend yield of BEARX is 10.18%, which is a significant percentage of the total return. This is higher than the Category Low of 0.00%.

Dividend yield can vary greatly between categories, with the Category High being as high as 17.26%. This shows that some investments offer much higher dividend yields than others.

To put this into perspective, the BEARX % Rank of 3.08% indicates that BEARX's dividend yield is lower than 96.92% of other investments in the same category. This suggests that BEARX may not be the best choice for investors seeking high dividend yields.

A fresh viewpoint: Risk Return Tradeoff

Here's a comparison of BEARX's dividend yield with the Category Low and High:

Keep in mind that a higher dividend yield may not always be better. It's essential to consider other factors, such as the investment's overall performance and risk level, before making a decision.

When analyzing a fund's performance, one key metric to consider is the Net Income Ratio. In the case of BEARX, this ratio is a whopping -2.68%. This is significantly lower than the Category Low of -7.24%, but surprisingly higher than the Category High of 3.75%.

This means that BEARX has a relatively strong net income ratio compared to its peers, ranking 79.31% in its category. This is a crucial factor to consider when evaluating the fund's overall performance and potential for growth.

Consider reading: Lowest Expense Ratio Index Funds

The Federated Hermes Prudent Bear Fund Institutional Shares had a 1-year performance of -8.85. This is one of the lower performing funds in the category.

Let's take a look at the historical data for the BEARX fund. The highest price recorded was 4.60 on February 21, 2025.

The fund's price fluctuated between 4.49 and 4.60, with a difference of 0.11 between the highest and lowest prices. This shows that the fund's price was relatively stable during this period.

Here's a summary of the fund's historical data:

The fund's average price during this period was 4.53, which is relatively close to the highest price recorded.

Expand your knowledge: Fidelity Blue Chip Growth Fund Stock Price

The Federated Prudent Bear Fund is available to investors through various distribution channels. It can be purchased through a financial advisor or directly from the fund's website.

The fund is listed on the New York Stock Exchange (NYSE) under the ticker symbol BEARX. This makes it easily accessible to individual investors who want to buy and sell shares.

In terms of comparison, the Federated Prudent Bear Fund has a similar investment strategy to other bear funds on the market, but its specific focus on short-term debt and equity securities sets it apart.

Additional reading: Do Angel Investors Get Equity

Capital Gain Distribution is a crucial aspect of investment management. For instance, BEARX distributes capital gains annually.

In fact, all the funds mentioned in the analysis, including BEARX, Category Low, and Category High, distribute capital gains on the same frequency. This means investors can expect to receive annual capital gain distributions from these funds.

Here's a brief summary of the capital gain distribution frequency for each fund:

This consistency in capital gain distribution frequency can help investors plan and manage their investments more effectively.

When evaluating the performance of various funds, a comparison of their 1-year performance is a crucial aspect to consider.

The Federated Hermes Prudent Bear Fund Institutional Shares has shown a 1-year performance of -8.85.

For those considering the ProFunds UltraShort International Fund Investor Class, it's essential to note that its 1-year performance is -8.44.

A closer look at the PIMCO StocksPLUS Short Fund reveals that the Class C shares have a 1-year performance of -8.39.

On the other hand, the PIMCO StocksPLUS Short Fund Class A shows a 1-year performance of -7.65.

Lastly, the PIMCO StocksPLUS Short Fund I-3 has a 1-year performance of -7.49.