Asset management firm Rydex Investments is launching a new fund of funds that takes a retail approach to hedge fund investing. The new vehicle, the Rydex Alternative Strategies Allocation Fund, invests in a suite of alternative mutual funds and ETFs and provides exposure to alternative asset classes such as hedge funds, commodities, currency arbitrage, managed futures and real estate.
The fund uses a quantitative investment methodology and seeks to deliver returns that have a low correlation to traditional stock and bond asset classes, as well as to provide capital appreciation.
"By packaging alternative exposures within mutual fund product structures, Rydex has been able to deliver the potential benefits of alternatives to individual investors in a retail-friendly format," says Edward Egilinsky, managing director of alternative investments for Rydex.
According to Kevin McGovern, managing director of Rydex mutual funds, the new fund can help investors who are uncertain about how many and which types of alternatives to incorporate into their portfolios.
"We are pleased to build on this expertise with Rydex Alternative Strategies Allocation Fund, offering a packaged solution for investors seeking multiple alternative investments within a single fund," he said.
Rydex manages approximately $15 billion in assets via nearly 100 mutual funds and exchange traded products.