Rydex Funds has launched a new fund targeted to investors unsure of sector strategy in a volatile marketplace, a spokesperson with the firm told the MutualFundWire.com. The new offering is the Rydex Sector Rotation Fund, and it will rotate into industries that the firm believes have demonstrated strength.

"Our portfolio managers have a quantitative model that collects data, analyzing data over a 12 month period. The managers are making allocations every month. And they are utilizing a price momentum strategy. We will go into industries poised for growth and sell industries that are starting to underperform," the official reported.

The fund will invest in 10 to 12 industries at a time. It will be available both through the broker/dealer channel and the retail channel. The fund will be team managed. Rydex currently has 17 sector funds.

"We have found that there are investors who are interested in sector investing, but may not be comfortable with sector strategy. Our new rotating fund provides a solution for that. And we feel that it will be a good option for most markets, including tax-protected accounts," she contended.

The firm further argues that it, in its sector analysis, drills down to more specific industries than broader definitions. "It is at this more precise level that opportunities can be found," stated Charles Tennes, director of portfolio. "The IT sector, for example, was off 24.29% last year; but within that sector, the office electronics industry was up 73.01%. Investing at the industry level enables us to capture similar opportunities." 

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