Rydex Dynamic Inverse Nasdaq-100 2x Strategy Fund Down 34.35% In 2014
The Rydex Dynamic Inverse Nasdaq-100 2x Strategy Fund, which trades under the ticker symbols RYVTX, RYVNX, and RYCDX, is a non-diversified fund that seeks to match 200% of the inverse daily performance of the Nasdaq 100 Market Index. In other words, the fund attempts to move twice as much as the index, but in the opposite direction. The fund seeks to invest 80% of its assets in short sales of securities, options, and derivatives. Additionally, the fund may use leveraged borrowings for investment purposes.
The fund has consistently had very poor performance. In 2014, the A-class shares, RYVTX, were down 34.35% for the year, and the 5-year average annual return is negative 36.79%.
On February 24, 2014, the fund, managed by Ryan Harder and Michael Byrum, issued a 1:7 reverse split of the shares in order to create a higher Net Asset Value (NAV) per share.
If your financial advisor or stockbroker recommended that you invest in the Rydex Dynamic Inverse Nasdaq-100 2x Strategy Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the Rydex Dynamic Inverse Nasdaq-100 2x Strategy Fund, then you may have a claim for misrepresentation. If your investment objective was to only invest in safe and stable investments, you may have a claim for unsuitability. If the Rydex Dynamic Inverse Nasdaq-100 2x Strategy Fund made up a large portion of your portfolio, then you may have a claim for over-concentration and lack of diversification. If your advisor purchased this fund without your knowledge, you may have a claim for unauthorized trading. If your advisor purchased this fund on margin, you may have a claim for excessive use of margin and negligence.
The attorneys at Carlson & Associates, P.A., located in Miami, Florida, represent investors who have lost money due to the improper conduct of financial advisors. If you would like to have a free consultation, we can be reached at (305) 372-9700 to discuss your options.
