Alternative Investing

Providing alternatives since 1997

The concept of alternative investments may be relatively new to investors, but at Federated, we’ve had them in the mix for some time. In fact, we believe that diversifying portfolios beyond traditional asset classes has potential for reducing volatility without sacrificing long-term returns. With that in mind, consider a few of our alternatives:
Federated Prudent Absolute Fund Federated Absolute Return Fund
Positioned for market advances or declines by taking a net long or short exposure in a wide range of domestic and foreign securities, both debt and equity, that the fund’s managers deem to be mis-valued or misunderstood.
Federated Prudent Bear Fund Federated Prudent Bear Fund
A net short fund managed to capture opportunity in down markets by employing strategic short selling along with long investments in companies that mine or explore for gold, precious metals or other natural resources.
Federated Prudent Dollar Bear Fund Federated Prudent Dollar Bear Fund
Designed to perform in the opposite direction of the U.S. dollar. Invests primarily in foreign short-term, investment-grade fixed-income securities, with an allocation to stocks of precious metals mining companies.
Federated International Unconstrained Bond Fund Federated Unconstrained Bond Fund
A "go anywhere" multi-sector fixed-income investment approach, seeking to provide high total returns in any market environment by constructing a concentrated approach to our highest conviction opinions with a constant eye toward lower downside risk. Average duration can range from -5 to +10 years.

Videos on YouTube Choose a topic or watch the series, which explains short selling and other bear investing concepts.

More Resources

Unconstrained Bond Fund: Adapting to the Marketplace (PDF)
Q&A: Prudent Bear & Prudent Dollar Bear Funds (PDF)
A Prudent Approach to Reduce Your Risk Profile (PDF)
Approach to Managing Alternative Investments (PDF)


 
 
 
 
 
 
 
 
 
 
 
Diversification does not assure a profit nor protect against loss.
International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-markets securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets.
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
Alternative portfolios may engage in strategies that involve additional risks, such as increased volatility.
The Prudent Bear Fund and the Prudent Absolute Return Fund may make short sales of securities, which involves unlimited risk including the possibility that losses may exceed the original amount invested.
Investments in gold and precious metals may be subject to additional risks.
The prices of gold and other precious metals may be subject to substantial price fluctuations over short periods of time and may be adversely affected by unpredictable international monetary and political developments.
Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.
See the fund fact sheets for more specific risks associated with investing in each of the funds.
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Copyright © 2013 Federated Investors, Inc.

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