No, not exactly. We do not hold any stocks that trade in the pink sheets. OTC is a name commonly referring to the Nasdaq. The Nasdaq 100 is an index, while the Nasdaq composite is an exchange. They usually carry a symbol of four letters and are usually referred to on Wall Street as over the counter stocks that do not have a specialist making a market.
Short funds are tricky funds to manage because in rising markets their NAVs obviously decline.
For example, the first quarter of this year was a good time for the equity markets and as our short funds decline in value, they have been unable to rebound as the market declined. The reason being was because as the market declined, their NAVs were starting at a much lower point as they began to rise. The term is called negative compounding and it is common to all short funds. Short funds are primarily used as a short-term hedge vehicle by institutional inventors, such as hedge funds and asset managers. Enhanced index funds are desirable products because it gives you the opportunity to outperform the market with a portion of your assets.