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Direxion launches long/short global IPO mutual fund


Direxion, a provider of alternative investment strategies, has launched the Long/Short Global IPO mutual fund.

The fund provides institutional-style access to investment opportunities in the global initial public offering market, plus active long/short management through the early stages of the new-issue lifecycle.

Ipox Capital Management will serve as the fund’s sub adviser.

The fund’s objective is to seek capital appreciation through a risk-controlled portfolio. To achieve this, the fund invests in IPOs and spin-offs using a combined long/short strategy.

"IPOs have substantial economic significance, and are the lifeblood of global equity capital markets activity," says Dan O’Neill, Direxion Funds’ president. "We view IPOs as a separate asset class which, globally, can diverge significantly over time from the performance of traditional benchmark indices. For investment professionals and sophisticated investors who seek tactical exposure to alternative asset classes, the Direxion Long/Short Global IPO fund provides an opportunity to take advantage of this relatively unexplored realm with a hedged strategy that helps to mitigate risk."

As a buy-and-hold managed tactical fund, the fund is best suited for investors who value a tactical approach, yet are unable to manage an active strategy on their own.

The long portion of the fund’s portfolio holds stocks that are within their first year of public offering and are expected to deliver short-run outperformance. The short portion of the portfolio holds stocks that are within their second-through-fourth year of public offering and are expected to underperform.

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