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 The
TCM Premium Strategy is an aggressive growth approach,
launched in September of 2000. The strategy’s objective is
to improve the investment performance of a buy-and-hold
strategy by reducing losses and outperforming the S&P 500
index over any continuous 12-month period. No guarantee can be
made that is objective will be met.
This
is a market timing approach which moves 100% of a client’s
portfolio in response to signals generated by technical market
analysis. It is based on a similar strategy used since 1992
without the benefit of funds that offer 200% exposure to short
and long moves of key indices.
The
Premium Strategy uses Rydex’s Dynamic Funds, Ursa Fund, U.S.
Government Bond Fund and Money Market Fund. The Dynamic Funds
offer a daily target of 200% exposure to the Standard &
Poor's 500® Composite Stock Price Index and the NASDAQ 100
Index® with both long and short objectives. Rydex Ursa seeks
100% of the inverse (opposite) return of the daily performance
of the S&P 500 Index. Rydex US Gov’t Bond Fund seeks
120% of the daily price movement of the current Long Treasury
Bond.
Using
technical analysis, markets are deemed bullish, bearish or
sideways, and indicators are adjusted accordingly. Because
indicators are generally oscillating or trend following,
indicating what has happened in the market, buy and sell
signals are anticipated rather than chased. Heavy emphasis is
placed on determining the exit point to control losses.
Positions
are monitored on a daily basis and may trade daily as needed.
The frequency of trades depends on the percentage move of the
market and not necessarily a time period. The more volatile
the market, the more frequent trades may occur.
Investing
in the Rydex Dynamic Funds involves certain risks, which may
include increased volatility due to the use of options of
futures. Targeting 200% exposure can result in accelerated
losses as well as accelerated gains, depending on the position
held and how the market moves. Please read the prospectus
carefully before you invest or send money.
Past
performance may not be indicative of future results. No
current or prospective client should assume that future
performance of any specific investment, investment strategy
(including the investments and/or investment strategies
recommended and/or purchased by Tango Capital Management) or
product made reference to directly or indirectly by Tango
Capital Management in its web site, or indirectly via a link
to an unaffiliated third-party web site, will be profitable or
equal to prior performance levels.
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