Rydex Takes Managed Futures Mainstream

Mar 6 2007 | 2:42pm ET

Rydex Investments is taking retail investors a step further into the alternatives investment space with a mutual fund featuring exposure to managed futures.

The Rydex Managed Futures Fund, which was launched this week, will provide its investors access to the U.S. commodity and global financial futures markets through the use of structured notes by tracking the performance of the Standard & Poor’s Diversified Trends Indicator.
 
The S&P DTI is comprised of 14 sectors with 50% allocated to financial futures and 50% to commodity futures. It has the ability to go long or short based on price momentum with the exception of the energy sector, which can only go long or neutral. The model rebalances on a monthly basis.

“The S&P DTI methodology is rules-based and relies on trends to capture profits,” said Edward Egilinsky, managing director of alternative investments at Rydex. “The S&P DTI also offers benefits from a diversification standpoint. It has historically shown a very low or slightly negative correlation to traditional investments such as fixed-income and equities and at the same time exhibits an attractive risk/return ratio.”

Rydex currently manages some $14 billion in mutual funds and exchange-traded funds.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of