Absolute return funds aim to generate returns that are uncorrelated with the broader market. You look like a fool when markets are ripping (buy any passive etf)

Absolute return funds aim to generate returns that are uncorrelated with the broader market. You look like a fool when markets are ripping (buy any passive etf) and a hero when you generate outsized returns. One way to generate uncorrelated returns is by being long (making money when stocks go up) and short (making money when stocks go down) -- you are effectively trying to make money on the spread between your buys and sells. In bullish markets, being short can hurt -- a lot. Hence you end up with negative returns (Your shorts did a lot worse, than your longs did good). Hussman's funds satisfy a need in the marketplace for uncorrelated funds -- he did really well in the dot com bust and the years after that, but has really lagged behind not just the market but other peer market neutral funds which should be the true yardstick to measure his success.