Rydex Funds has launched its Sector Rotation Fund, a new offering that brings the firm closer to the arena of active management. The Rockville, Md. fund complex has built its business on a quantitative approach that provides enhanced index and sector-based investment tools.
Many of Rydexs shareholders have been asking for more guidance on the subject of sector rotation, said Louis Foran, EVP of sales and marketing at Rydex.
The new fund uses a set discipline to determine when to enter and exit 59 different industries. "Mutual fund investors have reason to be frustrated that some managers held on to their tech holdings long after the pricing bubble burst in early 2000. By imposing a discipline that rotates out of under-performing industries, Rydex is making an unbiased sell strategy an integral part of the funds construction," Charles Tennes, director of portfolios at Rydex, said in a statement.