“No  one is more eager for the next bear market than long-short hedge funds,” reports a recent Bloomberg article.

These funds, the article explains, are not designed to keep up with the bull market. “Instead,” it says, “their ability to short stocks provides shelter during the occasional bear markets and by extension less volatility and higher risk-adjusted returns than the broad market over time.”

Over the last nine years, however, these funds have lagged the market:

The article points out, “Long-shorts delivered their promised protection during the previous two bear markets,” adding, “It’s reasonable to expect that long-shorts will shield investors again during the next downturn. But that protection isn’t free, and the cost is lower returns during rising markets.”