The Direxion Monthly Latin America Bull 2X Fund (DXZLX) Down 30.92% In 2014
The Direxion Monthly Latin America Bull 2X Fund (DXZLX) is a non-diversified fund that seeks to match 200% of the monthly performance of the S&P Latin America 40 Index. In other words, the fund attempts to move twice as much as the index in the same direction. The fund seeks to invest its assets in common stocks, options, derivatives, swaps, and exchange traded funds (ETFs).
The fund has consistently had very poor performance. In 2014, shares of DXZLX were down 30.92% for the year, and the 5-year average annual return is negative 20.07%.
As of August 31, 2014, the fund, managed by Tony Ng and Paul Brigandi, was 100% invested in a difficult to value swap agreement.
If your financial advisor or stockbroker recommended that you invest in the Direxion Monthly Latin America Bull 2X Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the Direxion Monthly Latin America Bull 2X 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 Direxion Monthly Latin America Bull 2X 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.