Rydex Investments has issued a white paper that outlines a new theory they call – Essential Portfolio Theory (EPT). The thrust of the theory is that investors should move away from plain-vanilla asset class investing to include ‘alternative assets’ that have lower correlations with the equity markets. Not surprisingly Rydex has a number of funds that fit that bill. Interesting in that most fund companies are unwilling to generate an entire investment theory in support of their market efforts.
You can read the press release here and the full white paper here. It will be interesting to see what kind of traction they are able to achieve with this “new” approach to the markets.