Guggenheim L/S Commodities Strategy
A managed futures fund invests in derivatives, such as futures contracts, swaps and options. A key advantage is flexibility, as the portfolio manager can go both long and short. The goal is to achieve absolute returns — that is, to get gains in any market environment.
But the strategy has not translated into gains for the Guggenheim L/S Commodities Strategy (MUTF:RYLEX) fund.
Of course, the fund has focused on commodities, which have seen lots of volatility this year. Plus, the fund’s returns are held back by significantly high costs, with fees of 2.67%.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of the upcoming book How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO. Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.