Direxion Launches Long/Short Currency Fund

Oct 1 2013 | 12:49pm ET

Alternative investment specialist Direxion has launched a long/short currency fund based on the methodology of the Morgan Stanley Multi FX Enhanced V10 USD Index.

The Direxion Long/Short Global Currency Fund offers investors direct exposure to 19 currencies, in both developed and emerging markets. The strategy weighs interest rates, inflation, open interest and stock index performance when determining whether to invest long or short in an individual currency; targets volatility of 10%; and rebalances portfolio allocations monthly, at minimum.

“Our fund offers investors the opportunity to directly invest in foreign currencies and potentially benefit whether the U.S. dollar increases or decreases in value relative to those currencies,” said Edward Egilinsky, managing director and head of alternative investments at Direxion. “The fund sets itself apart in the marketplace by offering retail investors both the broad diversification of 19 global currencies—in developed and emerging markets—combined with a long/short approach.

“Currencies have historically displayed low correlations and independent return streams to other alternative asset classes and strategies, such as managed futures and hedge funds,” said Egilinsky. “The ability of a long/short currency strategy to perform in varied market conditions provides investors the potential for additional diversification within a stock and bond portfolio.”

Direxion Funds and Direxion Shares offer leveraged index funds, ETFs and alternative-class fund products. They are managed by Rafferty Asset Management, which was founded in 1997 and had approximately $7.3 billion in assets under management as of September 30, 2013.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

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

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.