Direxion Puts HY Bear Fund to Sleep

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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