Interesting new mutual fund: Rydex Managed Futures Fund
http://newrydexfund.notlong.com
'The benchmark also looks at each individual sector on a rolling seven-month period. "If the current price is higher than that longer-term moving average, then the fund will go long in that sector for that month," Egilinsky said. "If the current price is below that moving seven-month average, it goes short for that month."
It's similar to strategies futures traders use in terms of implementing a computer-driven, trend-following approach, he added.
"Nobody's going to look at managed futures as a standalone vehicle, but over time it can reduce volatility of an investor's core portfolio holdings," Egilinsky said.
Rydex says back-tested returns for its newest fund show that over long periods it should zig when stocks zag. It also should produce slightly greater swings than bonds. But performance based on historic returns for all asset classes in the fund indicates greater profits for investors, Egilinsky says.
"Rydex is essentially using the same strategy with this fund as most commodity trading advisers serving institutional investors do," Payne said.'
http://www.rydexinvestments.com/campaigns/managed_futures.html
http://newrydexfund.notlong.com
'The benchmark also looks at each individual sector on a rolling seven-month period. "If the current price is higher than that longer-term moving average, then the fund will go long in that sector for that month," Egilinsky said. "If the current price is below that moving seven-month average, it goes short for that month."
It's similar to strategies futures traders use in terms of implementing a computer-driven, trend-following approach, he added.
"Nobody's going to look at managed futures as a standalone vehicle, but over time it can reduce volatility of an investor's core portfolio holdings," Egilinsky said.
Rydex says back-tested returns for its newest fund show that over long periods it should zig when stocks zag. It also should produce slightly greater swings than bonds. But performance based on historic returns for all asset classes in the fund indicates greater profits for investors, Egilinsky says.
"Rydex is essentially using the same strategy with this fund as most commodity trading advisers serving institutional investors do," Payne said.'
http://www.rydexinvestments.com/campaigns/managed_futures.html
