As investment strategists call for ever-more diverse asset allocations in client portfolios, fund companies are responding by offering access to markets that, even today, are off the beaten path.
Direxion has launched a new mutual fund that provides investors with access to global initial public offerings (IPOs), with a twist. The fund can go long or short these IPOs. The Direxion Long/Short Global IPO fund (DXIIX), is an actively-managed fund that the firm says “is a non-correlating, liquid fund that offers potential diversification to any portfolio,” according to the company’s March 1 news release.
With non-correlative assets such an elusive part of many portfolios, this could be worth a closer look. The fund’s objective is “capital appreciation through a risk-controlled portfolio. To achieve this, the Fund invests in IPOs and spin-offs using a combined long/short strategy,” and is managed by sub-advisor IPOX Capital Management, LLC.