Portfolio Strategies Investments is launching another PSI Calendar Effects Fund, which is very similar to Direxion's 2005 to 2008 fund.

The fund invests in equities during holidays as well as fixed income, and ETFs and mutual funds with long and short investments in bonds. The fund also invests in alternative assets, which are commodity-related, currency-related or real-estate related securities, according to the SEC filing.

On what are called "institutional pressure days," the fund primarily invests in a combination of open-end mutual funds and ETFs that invest in equity securities, bonds, foreign equity securities and alternatives. On non-institutional pressure days, the fund invests in mostly mutual funds and ETFs investing in long and short investments across all segments of the bond market, and it may attempt to reduce risk by investing in instruments that short certain segments of the bond market.

Sound a bit loopy? MarketWatch's Chuck Jaffe thought Direxion's fund was in 2008, labeling it "Stupid Investment of the Week." Jaffe says the investment's strategy, which is to beat the S&P 500 with a lot less risk, isn't well thought out because the fund is invested in money markets 70 percent of the time, making it difficult to get real returns. When Jaffe covered the fund, it had an average return of less than 2.5 percent from its 2004 inception to his February 2008 commentary.

To read more, click here.  

Edited by: Casey Quinlan


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