The funds will be managed by the Rydex portfolio team, which will utilize various strategies, such as going short, using leverage and arbitraging. The funds have a minimum investment of $25,000 for direct investors in H-Class Shares; $1,000 for A- and C-Class retirement accounts and $2,500 for all other A- and C-Class share accounts.
The new funds are used to take investors who want the liquidity, transparency and low-cost benefits of normal mutual fund investing and give them access to riskier hedge-fund strategies.
"The introduction of these funds gives investors new choices in absolute return investing," said Jeff Joseph, managing director Rydex Capital Partners. "We believe our new funds are well positioned to help investors meet their investment goals by seeking hedge fund-like returns within a mutual fund, thus offering the advantages of convenient access, liquidity and transparency within an SEC-regulated vehicle."
The appeal of the funds, according to Rydex, is that they seek to provide capital appreciation consistent with the risks and returns of hedge funds, but with a much lower risk. And that much of the risk rewarding of hedge fund investing can be delivered using what Joseph calls, "a quantitative process that can successfully identify, isolate and invest in the styles and strategies that comprise the majority of hedge fund returns."
Investors will have access to the net asset value daily, either by phone or via the Internet.
