There is some performance-chasing going on.

We're cautious, considering how well real estate funds have performed since the beginning of 2000. As much as some of the fundamentals look to be improving in real estate sub-sectors - for example, we've had sustained job growth, and that leads to greater demand for office and apartment space - we think price appreciation has largely outstripped the rate of change.

It's really about stock picking.

The bonds hold up better in down markets and they also have some percentage of shorts to protect on the downside, yet they get enough upside on the convertible bonds, which act like stocks in rising markets.

It has a long track record (since 1990) and is generally the poster child for what you would want from a market-neutral fund.

This fund had another disappointing showing in 2005. Its 4% gain ranked below 70% of its peers in Morningstar's large-cap growth category.