Absolute return mutual funds are capturing more asset flow and media attention. Tuesday, U.S. News & World Report's Fund Observer column looks at the segment, highlighting funds from AMG, Hussman and Highland.

Morningstar, according to the report, now tracks 105 long-short funds, up from 61 at the end of 2006. These funds pulled in $10.5 billion in net flows in 2009, roughly four times the $2.6 billion the took in in 2007.

Still, Morningstar analyst Russel Kinnel does not give the funds an unqualified thumbs up pointing out their average 213 basis points in expenses.

"Long-short funds can be useful ways to get some returns in up or down markets," Kinnel tells the magazine. "You have to be very selective, though, because most of them are overpriced and will likely disappoint." 

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