The Rydex Basic Commodities Fund Down Over 33% In 2014
The Rydex Basic Commodities Fund, which trades under the ticker symbols RYMEX, RYMBX, and RYMJX, is a non-diversified fund that seeks to match the daily performance of the S&P GSCI Commodity Index. GSCI stands for Goldman Sachs Commodity Index. The fund seeks to invest its assets in commodity-related securities, such as commodity pools, swaps, options, and derivatives. Additionally, the fund may invest up to 25% of its assets in a wholly-owned and controlled Cayman Islands subsidiary.
The fund has consistently had very poor performance. In 2014, the A-class shares, RYMEX, were down 33.89% for the year, and the 5-year average annual return is -10.45%.
The fund, managed by Ryan Harder and Michael Byrum, consists of other proprietary strategies, adding to the net fees and expenses. As of November 30, 2014, RYMEX had 20.61% of its assets invested in the Guggenheim Strategy II portfolio and 20.32% of its assets invested in the Guggenheim Strategy I portfolio. Rydex Funds is owned by Guggenheim Investments.
If your financial advisor or stockbroker recommended that you invest in the Rydex Basic Commodities Fund, you may have options to recover your investment loss. If your advisor failed to fully disclose the risks of investing in the Rydex Basic Commodities 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 Basic Commodities 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.