Given the number of tactical and absolute-return mutual funds hitting the market, it appears that some fund complexes are now giving their portfolio managers more leeway. The 17 individual traders who run ProfitScore Capital Management's multi-manager long/short unified hedge account accomplish this by actively trading mutual funds within their individual specialty. They primarily buy funds from Rydex, ProFunds and Direxion, including funds that permit intraday trades. Money Management Executive recently spoke with John McClure, CEO of ProfitScore, about this unusual approach.
MME: Your Harmony Plus portfolio delivered 1.8% last year, and your Expedition portfolio was up 3.75%, with five-year track records of nearly 12% and 14%, respectively. Given the pullback of the market in 2008, how did you achieve this growth?