Meet The 20 Worst-Performing Mutual Funds Of 2010

Paul BrigandiPaul Brigandi

In case you needed another reminder about how tough this year was for anyone who prepared for deflation and didn’t jump on the QE2 bandwagon, just look at the 20 mutual funds that performed the worst this year.Why’d they do so badly?

The names of the funds are pretty self-explanatory: 

ProFunds Short Precious Metals Inv, Rydex Inverse Dow 2x Strategy C, ProFunds UltraShort Dow 30 Inv, Direxion Mthly Emerg Mkts Bear 2X, ProFunds UltraShort China Inv.

Almost every one of the worst funds was designed as a bear fund (possibly for hedging purposes) or an inverse DOW fund, and because it was a bull year, they did horribly. 

#20 Tony Ng and Paul Brigandi

Fund: Direxion Mthly Dev Mkts Bear 2X

Annual return 2010: -29.87%

S&P benchmark: 15.06%

Size: $959,612

Top holdings: Efa Csfb Bullet Swap and Goldman Sachs FS Government FST.

Source: Morningstar

#19 Michael Dellapa, Ryan Harder and Michael Byrum

Fund: Rydex Inverse Dow 2x Strategy C

Annual return 2010: -31.19%

S&P benchmark:

Size: $41.39 mil

Top holdings: DJIA MINI E-CBOT DEC10, Credit Suisse Swap, Goldman Swap and Morgan Stanley Swap.

Source: Morningstar

#18 Hratch Najarian, Howard Rubin and Todd Johnson

Fund: ProFunds UltraShort Dow 30 Inv

Annual return 2010: -31.37%

S&P benchmark: 15.06%

Size: $8.76 mil

Top holdings: Profunds Swap Security Gs.

Source: Morningstar

#17 Howard Rubin, Robert Parker and Todd Johnson

Fund: ProFunds UltraShort Intl Inv

Annual return 2010: -31.97%

S&P benchmark: 15.06%

Size: $11.66 mil

Top holdings: N/A

Source: Morningstar

#16 Michael Dellapa, Ryan Harder and Michael Byrum

Fund: Rydex Inverse S&P 500 2x Strategy H

Annual return 2010: -32.87%

S&P benchmark: 15.06%

Size: $139.72 mil

Top holdings: Credit Suisse Swap, Goldman Swap, S&P500 EMINI FUT DEC10 and Morgan Stanley Swap.

Source: Morningstar

#15 Howard Rubin, Robert Parker and Todd Johnson

Fund: ProFunds UltraBear Inv

Annual return 2010: -33.07%

S&P benchmark: 15.06%

Size: $67.39 mil

Top holdings: N/A

Source: Morningstar

#14 Tony Ng and Paul Brigandi

Fund: Direxion Mthly S&P 500 Bear 2X Inv

Annual return 2010: -33.74%

S&P benchmark: 15.06%

Size: $10.44 mil

Top holdings: Cr Suisse S&P500 Bullet Swap, Goldman Sachs FS Government FST, Fidelity Instl MM Fds Government I, Fidelity Instl MM Fds Money Market Sel and Goldman Sachs FS Federal FST.

Source: Morningstar

#13 Michael Neches, Howard Rubin and Todd Johnson

Fund: ProFunds Short Precious Metals Inv

Annual return 2010: -33.83%

S&P benchmark: 15.06%

Size: $12.11 mil

Top holdings: N/A

Source: Morningstar

#12 Howard Rubin, Robert Parker and Todd Johnson

Fund: ProFunds UltraShort Emerg Mkt Inv

Annual return 2010: -35.87%

S&P benchmark: 15.06%

Size: $7.03 mil

Top holdings: N/A

Source: Morningstar

#11 Howard Rubin, Robert Parker and Todd Johnson

Fund: ProFunds UltraShort Latin America Inv

Annual return 2010: -38.43%

S&P benchmark: 15.06%

Size: $3.68 mil

Top holdings: N/A

Source: Morningstar

#10 Hratch Najarian, Howard Rubin and Todd Johnson

Fund: ProFunds UltraShort NASDAQ-100 Inv

Annual return 2010: -39.26%

S&P benchmark: 15.06%

Size: $26.83 mil

Top holdings: Profunds Swap Security Gs.

Source: Morningstar

#9 Michael Dellapa, Ryan Harder and Michael Byrum

Fund: Rydex Dyn Inverse NASDAQ-100 2X Strat H

Annual return 2010: -39.26%

S&P benchmark: 15.06%

Size: $63.43 mil

Top holdings: Credit Suisse Swap, NASDAQ 100 E-MINI DEC10, Goldman Swap and Morgan Stanley Swap.

Source: Morningstar

#8 Howard Rubin, Robert Parker and Todd Johnson

Fund: ProFunds UltraShort China Inv

Annual return 2010: -39.54%

S&P benchmark: 15.06%

Size: $5.66 mil

Top holdings: N/A

Source: Morningstar

#7 Tony Ng and Paul Brigandi

Fund: Direxion Mthly Emerg Mkts Bear 2X

Annual return 2010: -38.89%

S&P benchmark: 15.06%

Size: $4.82 mil

Top holdings: Eem Merrill Lynch Bullet Swap and Goldman Sachs FS Government FST.

Source: Morningstar

#6 Rajendra Prasad

Fund: Prasad Growth

Annual return 2010: -41.42%

S&P benchmark: 15.06%

Size: $322,988

Top holdings: Sify Tech, China Nepstar Chain Drugstore Ltd. ADR, Satyam Computer Services, Ltd., China Sky One Medical, Inc. and China Digital TV Holding Co., Ltd. ADR.

Source: Morningstar

#5 Tony Ng and Paul Brigandi

Fund: Direxion Mthly NASDAQ-100 Bear 2X Inv

Annual return 2010: -42.31%

S&P benchmark: 15.06%

Size: $3.86 mil

Top holdings: Ndx Cs Swap Bullet, Fidelity Instl MM Fds Government I, Fidelity Instl MM Fds Money Market Sel, Goldman Sachs FS Federal FST and Goldman Sachs FS Government FST.

Source: Morningstar

#4 Hratch Najarian, Howard Rubin and Todd Johnson

Fund: ProFunds UltraShort Mid-Cap Inv

Annual return 2010: -46.84%

S&P benchmark: 15.06%

Size: $2.20 mil

Top holdings: N/A

Source: Morningstar

#3 Michael Dellapa, Ryan Harder and Michael Byrum

Fund: Rydex Inverse Russell 2000 2x Strategy A

Annual return 2010: -49.83%

S&P benchmark: 15.06%

Size: $21.26 mil

Top holdings: Credit Suisse Swap, Russell 2000 Mini Mar11, Morgan Stanley, Russell 2000 Mini and Goldman Swap.

Source: Morningstar

#2 Tony Ng and Paul Brigandi

Fund: Direxion Mthly Small Cap Bear 2X

Annual return 2010: -50.13%

S&P benchmark: 15.06%

Size: $6.87 mil

Top holdings: Russell Index Swap Bllt and Goldman Sachs FS Government FST.

Source: Morningstar

#1 Hratch Najarian, Howard Rubin and Todd Johnson

Fund: ProFunds UltraShort Small-Cap Inv

Annual return 2010: -51.19%

S&P benchmark: 15.06%

Size: $17.30 mil

Top holdings: Profunds Swap Security U and Profunds Swap Security Gs.

Source: Morningstar

What investment strategies worked well for mutual funds this year?

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