Betting on the Bear Take advantage of slumping stock prices.

If you think there's no place to hide during down markets,you're not thinking strategically. Four funds from Rydex GlobalInvestors made banking firm Lipper & Co.'s top-performinglist during the first quarter of 2001. The funds-Arktos (Greek for"bear"), Tempest 500, Ursa (Latin for "bear")and Venture 100-tore the stuffing out of other equity funds'performances, thanks to their short-selling strategy.

A short investment strategy means portfolio managers sellborrowed stock and then buy it back at a later date, hopefully atlower prices. "When you have a short position, your interestsare contrary to that of the market," explains Chuck Tennes, ofRydex. "When the market [goes] down, you're able to makemore money because you'll be able to return those shares at alower price."

The downsides to bear market investing? For openers, stockprices are fickle, and when the market turns upward, portfoliomanagers have to pay up to return their borrowed shares. Also,annual expenses can be high. These funds aren't necessarily forthe buy-hold or forget-about-it investor. So research themthoroughly before investing.