WEST PALM BEACH, FL (www.hedgeco.net) –  The New York based asset manager, Rydex Investments has launched two new mutual fund vehicles that will offer investors hedge fund like trading strategies. According to officials of Rydex, the two new portfolios will still make money for their investors even at times when traditional equity markets decline. David Reilley, director of portfolio strategy for Rydex, said, “At the news briefing in New York after introducing the two new funds that traditional investment product offers little protection when the equities markets decline.  The traditional investment products had limited tools to mitigate down markets and didn’t have anything to address it head on,” Reilley explained.

The new Rydex Hedge Equity Funds will be using long positions in value stocks along with short positions in stocks considered as non-value according to Reilley. The new strategies may also initiate long positions in growth stocks and short positions in non-growth stocks; similar strategies known as market neutral strategies are also employed by hedge fund managers.

The Rydex Hedge Equity Fund will also use merger arbitrage and covered options according to Reilley.  The funds absolute return strategies will employ market neutral value and growth strategies in addition to other investment instruments such as commodities and fixed-income for trading. The fund will use in-house team employing qualitative methods for selection of trading instruments. According to released information, the funds will have a minimum investment of $1,000; details about fees were not immediately provided.

Paul Oranika
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HedgeCo.Net
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