Capital management giant Guggenheim files new fund with SEC, may seek crypto exposure

Guggenheim’s new fund’s investment objective is to maximize total return through a combination of current income and capital appreciation.

Capital management giant Guggenheim files new fund with SEC, may seek crypto exposure

Capital management giant Guggenheim filed with the Securities and Exchange Commission (SEC) on Tuesday to launch a new fund called Guggenheim Active Allocation Fund.

The fund’s investment objective is to maximize total return through a combination of current income and capital appreciation, according to the document. The fund will employ a tactical asset allocation strategy (dynamic allocation across asset classes) and a relative value-based investment strategy that uses quantitative and qualitative analysis to identify securities with attractive relative value and risk/return characteristics.

To achieve its investment objective, the fund will seek to invest in a variety of fixed income and other debt and preferred equity securities selected from various sectors, including government and agency securities, corporate bonds, and structured financial investments.

The Fund may also invest in common stock, limited liability companies, trust certificates and other equity investments (“common equity securities”).

Capital management giant Guggenheim files new fund with SEC, may seek crypto exposure

Scott Minerd, the sub-advisor responsible for the day-to-day management of the fund’s portfolio, believes these investments offer attractive yields and potential for capital appreciation. The fund plans to use various valuation models to determine the appropriate allocation among asset classes.

As part of its common stock securities strategy, the fund may employ a strategy of selling call options and may from time to time buy or sell puts on individual common stock securities.

In addition to this strategy, the fund may, to a lesser extent, pursue a strategy that includes selling calls and puts on securities indices and securities sectors.

“The fund may seek exposure to cryptocurrencies (particularly bitcoin) through cash-settled derivatives, such as cash-settled exchange-traded futures, or through investment vehicles that provide exposure,” the document reads on page 7.

Scott Minerd has warned crypto investors of continued market volatility in the short term and predicted that the cryptocurrency market will take some time to recover, but that bitcoin and ethereum will eventually be among the very few survivors.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/capital-management-giant-guggenheim-files-new-fund-with-sec-may-seek-crypto-exposure/
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