The Board of Trustees of Direxion Funds is liquidating the Direxion HY Bear Fund based on the recommendation of the fund’s investment adviser, Rafferty Asset Management, LLC, according to a Securities and Exchange Commission filing.

The fund’s liquidation, which will take place on August 29, was “due to its inability to attract sufficient investment assets to maintain a competitive operating structure,” according to the filing. It will be closed to new investments on August 15.

The HY Bear Fund’s mandate was to short junk bonds. It was down -6.89% year-to-date as of June 30, managed less than $1 million as of July 23 and sports an expense ratio of 190 basis points.

A spokesperson for the firm was not immediately available for comment on the fund's liquidation.

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