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Direxion Funds to Open New 2.5x Dollar Bear Fund; Fund Benefits from Decline in Value of U.S. Dollar on Global Markets.

BOSTON, & NEW YORK -- Direxion Funds, a leading provider of leveraged index and alternative-class mutual fund products, will open a new Dollar Bear 2.5x Fund this week. The fund adds to Direxion Funds' current portfolio of 33 mutual funds--including 10 other bull (long) and bear (inverse) funds offering 250% leverage.

The short Dollar Bear 2.5x Fund seeks daily investment returns, before fees and expenses, of 250% of the inverse (or opposite) of the price performance of the U.S. Dollar(R) Index (the USDX).

"We think future dollar weakness is likely in response to concerns about the U.S. trade and budget deficits," noted Daniel O'Neill, President and Chief Investment Officer. "The Dollar Bear 2.5x Fund seeks to provide leveraged exposure to such a decline, and should be attractive to investors looking to profit from a decline in the dollar or to hedge dollar-denominated financial assets."

The USDX reflects the value of the U.S. dollar on global markets by averaging the exchange rates between the U.S. dollar and six major world currencies. As of January 2006, the index tracked the dollar's value against a basket of currencies including the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc.

In addition to the Dollar Bear 2.5x Fund that it will open, Direxion Funds offers 33 mutual fund products, including 22 leveraged index funds, 10 sub-advised funds, and one money market fund. These represent multiple asset classes including domestic equity, international equity, fixed income, commodities, and currencies. By the end of 2006, Direxion Funds will offer more than 50 products, including specialty industry/sector funds.

Direxion Funds' bull and bear funds track the S&P 500(R), S&P(R) Mid Cap 400, MSCI(R) US Broad Market, NASDAQ-100(R), Russell 2000(R), MSCI EAFE(R), MSCI Emerging Markets(SM), S&P(R) Latin America 40, and Nikkei(R) 225 indexes. Other benchmarks for Direxion Funds products include the Dow Jones Industrial Average and the returns of 10 year treasury notes, high yield bonds, and commodities.

Direxion Funds' bull funds, or long leveraged index funds, seek to magnify the daily return of a particular index or benchmark, except for the Direxion High Yield Bond Fund, which seeks to maximize total return (income plus capital appreciation) in lower-quality debt instruments and derivatives of such instruments. The company's bear funds, or inverse leveraged index funds, seek daily investment results, before fees and expenses, which seeks to move in the opposite or inverse direction of a particular target index or benchmark. These funds also seek to magnify (in the inverse) the return of a particular index or benchmark, except for the Direxion High Yield Bear Fund, which seeks to profit from a decline in the value of lower-quality debt instruments and derivatives of such instruments.

About Direxion Funds

Direxion Funds (formerly Potomac Funds), managed by Rafferty Asset Management, LLC, is a major provider of leveraged index and alternative-class mutual fund products for investment advisors and sophisticated investors who seek to effectively manage risk and return in both bull and bear markets. Founded in 1997, the company has approximately $1 billion in assets under management. The company's highly professional management team has successfully grown major financial services businesses in highly competitive environments. Their business strategy is built on continuous product innovation, exceptional customer service and a commitment to building strategic relationships with a focused group of distribution partners. Direxion

Funds has offices in New York and Boston. For more information, please call 877-437-9363 or see www.direxionfunds.com.
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Publication:Business Wire
Date:Jun 6, 2006
Words:590
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