T-Rex 2x LNG Microsoft Daily Mutual Fund (MSFX)

Overview

The fund is a specialized investment vehicle that focuses on leveraging its assets to provide investors with enhanced exposure to Microsoft Corporation (MSFT). By primarily investing in swap agreements, the fund aims to offer returns that are twice the daily performance of MSFT. This strategy is achieved by entering into agreements with global financial institutions to exchange returns based on 200% of the daily movement of MSFT's stock, relative to the fund's net assets. The fund operates with a high-risk, high-reward principle, aiming to significantly amplify the gains that would normally be achieved through direct investment in MSFT. However, this approach also increases the potential for losses, reflecting the amplified exposure. It is classified as non-diverse, focusing its investments heavily in swap agreements linked to the performance of a single company.

Products and Services

• Swap Agreements for MSFT Exposure

  This service involves the fund entering into swap agreements with major global financial institutions. These agreements are designed to provide the fund with 200% daily exposure to Microsoft Corporation (MSFT), based on at least 80% of its net assets. The essence of these swap agreements is to exchange the return on the fund's investment in MSFT on a daily basis, offering potentially double the gains (or losses) of MSFT's performance. It enables investors to seek higher returns through a strategy that tracks twice the daily movement of MSFT's stock price.