Direxion Launches Fund Tied To Managed Futures Index

Feb 13 2012 | 11:35am ET

Boston, Mass.-based alternative investment manager Direxion has launched a mutual fund that aims to replicate the Auspice Managed Futures ER Index.

Direxion bills the new Indexed Managed Futures Strategy Fund as its latest “buy and hold” vehicle and “a liquid, transparent, and cost-efficient way to invest in managed futures.”

The Auspice index is a quantitative, rules-based managed futures index made up of 21 futures markets (including both physical commodities and financials). It is distinguished by an ability to adjust positions intra-month, a monthly rebalance process that assesses volatility levels as a means to control risk and a focus on shorter-term trends.

Direxion says the index also employs a “smart contract roll process” to deal with the possibilities of ‘contango’ (a situation arising when the futures price is above the expected future spot price, meaning the price will decline to the spot price prior to the delivery date) and ‘backwardation’ (the opposite of contango, a situation in which, as the futures contract approaches expiration, it will trade at a higher price).

“There are very few investable managed futures indices currently available to the retail investor. We feel that this is a differentiated, cost efficient way for investors to get exposure to the managed futures asset class without the additional layer of underlying managers and the fees associated with them," said Ed Egilinsky, managing director, head of alternative investments at Direxion. "This next generation version of managed futures indexing for the retail investor provides our shareholders with another opportunity to manage risk while pursuing returns in the current market.”


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note