filed papers with the SEC
to launch a fund that seeks to help investors profit from the inefficiencies in the IPO market. The investor class of the IPOX Global Long/Short Strategy Fund
would have a 190 bps expense ratio, and institutional investors would pay 140 bps.
The new fund will take long and short positions in new stocks and spinoffs, taking the general approach that shares of IPOs are initially overvalued but become undervalued soon after that, Andy O'Rourke
, Direxion marketing director, told the Wall Street Journal
Garden City, New York-based Rafferty Asset Management
will manage the fund, and IPOX Capital Management
, an IPO speciality house based in Chicago, will be the subadvisor.
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