Objective:
Our
objective with the Benchmark Strategy is to generate returns greater
than the broad domestic equity market as measured by the S&P 500
Index. Managing volatility and risk are paramount in the Benchmark
Strategy, however the strategy has the potential to provide positive
returns even in falling markets.
The
Benchmark Strategy seeks to be invested in up to 2 Rydex leveraged
"Long" benchmark index funds, and one sector fund when the market is
rising, and up to two of Rydex's "Short" benchmark funds when the
market is falling. During periods of extreme volatility or
"mixed" signals, the Benchmark Strategy seeks to have a portion or all
of the investment allocated in the Rydex U.S. Gov't Money Market Fund.
How the Strategy Allocates its Investment:
When
our Advanced Investment Technology has generated a "Buy" signal,
accounts will be fully invested in one or more of the following
universe of funds:
- NOVA, OTC, MID-CAP ADVANTAGE, RUSSELL 2000© ADVANTAGE
- 16 of 17 Rydex Sector Funds (Does not utilize the Precious Metals Fund)
- US Government Money Market Fund
When
our Advanced Investment Technology has generated a "Sell" signal,
accounts will be fully invested in one or more of the following funds:
- INVERSE OTC, INVERSE S&P 500, INVERSE MID-CAP, INVERSE RUSSELL 2000©
- US Government Money Market Fund
THE LONG ONLY VERSION:
Providing
an option to the investor whose investment risk tolerance may not allow
the degree of risk that is inherent in a "long/short" program, LBS
Capital Management offers a "Long Only" version of The Benchmark
Strategy. This Strategy operates on the exact same data and information
as the main strategy, however it will shift its assets to the US Gov't
Money Market Fund, when the main strategy takes an "Inverse or Short" position.
Monitoring:
As
an added measure of protection, proprietary money management analysis
tools are employed throughout each "Buy" or "Sell" signal. These tools
are designed to systematically realize profits and limit losses.
|
